Canada imposes tariffs on US-made cars, signals new global leadership

Canada’s Prime Minister Mark Carney has introduced a 25 per cent tariff on US-made cars and trucks, retaliating against the tariffs imposed by President Donald Trump on Canadian vehicles.

The move signifies Canada’s firm stance in escalating trade tensions with the United States, with Carney framing this decision as part of a broader strategy to assert Canada's role in the global economy, Caliber.Az reports via foreign media.

“Canada will collect about $5.7 billion from these retaliatory tariffs,” Carney said, emphasizing that this revenue, combined with the $42 billion from tariffs imposed earlier in March, would be used to support workers and businesses impacted by US measures.

“We take these measures reluctantly, and we take them in ways that’s intended and will cause maximum impact in the United States and minimum impact here in Canada,” Carney noted.

The tariffs are expected to have ripple effects in the US automotive industry, especially after Stellantis, a major automaker, announced a two-week shutdown of its Windsor, Ontario, factory due to the impact of the tariffs. James Stewart, president of the Unifor union, predicted that the shutdown could lead to layoffs at US factories supplying parts for the Canadian plant, underlining the interconnectedness of the auto sector between the two countries.

Carney also acknowledged that the tariffs would exclude auto parts, allowing Canadian manufacturers to still import US-made vehicles without incurring the penalty. However, he expressed strong concern over the broader implications, stating that the new tariffs “will rupture the global economy and adversely affect global economic growth.”

In a bold statement, Carney declared Canada’s intention to step into a leadership role in the face of US retrenchment. “If the United States no longer wants to lead, Canada will,” he affirmed. This remark came alongside his call to form a "coalition of like-minded countries" to create a new trading order, positioning Canada as a leader in shaping the future of global commerce.

By Vafa Guliyeva