Coils of electrical steel are shown at JFE Shoji Power Canada in Burlington. While Canada was spared from a lengthy list of countries hit with “reciprocal” tariffs, 25 per cent levies on steel and aluminum remain. Tariffs have also been placed on vehicles made outside the U.S.
Coils of electrical steel are shown at JFE Shoji Power Canada in Burlington. While Canada was spared from a lengthy list of countries hit with “reciprocal” tariffs, 25 per cent levies on steel and aluminum remain. Tariffs have also been placed on vehicles made outside the U.S.
U.S. President Donald Trump spared Canada from a lengthy list of so-called “reciprocal” tariffs in his April 2 “Liberation Day” announcement but made good on a threat to impose a 25 per cent levy against vehicles made outside the United States and maintained existing tariffs on Canadian steel and aluminum.
Trump’s announcement had an immediate impact on the Stellantis automotive assembly plant in Windsor, which announced a two-week pause for the weeks of April 7 and April 14. Operations will resume the week of April 21, according to the .
The Windsor plant produces the Chrysler Pacifica, Chrysler Grand Caravan, Chrysler Voyager and Dodge Charger Daytona.
ARTICLE CONTINUES BELOW
The. Auto. Tariff. Package. Will. Shut. Down. The. Auto. Sector. In. The. USA. And. In. Canada.
Don’t be distracted. 25% tariffs are 4 times the 6/7% profit margins of all the companies.
Math, not art.
— Flavio Volpe, C.M. (@FlavioVolpe1)
Flavio Volpe, president of the Automotive Parts Manufacturers Association of Canada, said Canadians sighing with relief for avoiding Trump’s reciprocal tariff list should remember Canada still has 25 per cent border tariffs on autos, and steel and aluminum.
ARTICLE CONTINUES BELOW
Posting to X, Volpe called the latest tariffs, “like dodging a bullet into the path of a tank.”
He also warned of grave consequences for the North American auto sector.
ARTICLE CONTINUES BELOW
“The. Auto. Tariff. Package. Will. Shut. Down. The. Auto. Sector. In. The. USA. And. In. Canada. Don’t be distracted. 25% tariffs are 4 times the 6/7% profit margins of all the companies. Math, not art,” Volpe posted to X.
ARTICLE CONTINUES BELOW
According to a , Trump will impose a 10 per cent tariff on all countries starting Saturday (April 5) at 12:01 p.m. eastern time.
Donald Trump announces new “reciprocal” tariffs in a Wednesday briefing at the White House Rose Garden.
Screenshot CBC YouTube
“These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated,” the White House said in a statement.
For Canada and Mexico, the White House said existing fentanyl tariffs remain in effect and are unaffected by the order. These levies were imposed in effort to force Mexico and Canada to stop the flow of fentanyl into the U.S., although Canadian officials have stated less than one per cent of the illicit drug comes from Canada.
Goods covered by the Canada-U.S.-Mexico agreement, known as CUSMA or USMCA, will continue to see a zero per cent tariff. Non-CUSMA compliant goods will see a 25 per cent tariff, and non-USMCA compliant energy and potash will face a 10 per cent levy.
In the event the existing fentanyl tariffs are terminated, CUSMA compliant goods would continue to receive preferential treatment, while non-CUSMA compliant goods would be subject to a 12 per cent reciprocal tariff.
ARTICLE CONTINUES BELOW
Some goods will not be hit with reciprocal tariffs, the White House clarified.
Steel and aluminum as well as autos and auto parts already subject to Section 232 tariffs will not be subject to further tariffs. The same goes for copper, pharmaceuticals, semiconductors and lumber articles. Bullion, energy and other minerals not available in the United States will not see additional levies at this time, the Trump administration added.
Prime Minister Mark Carney said Trump’s new trade measures will fundamentally change the international trading system but maintains the commercial relationship between Canada and the U.S.
Citing the ongoing fentanyl tariffs, the levies on steel and aluminum and new tariffs on automobiles, Carney said the U.S. has signalled a potential for additional tariffs in strategic sectors. These new measures could impact pharmaceuticals, lumber and semiconductors, Carney added.
“We’re in a situation where there is going to be an impact on the U.S. economy … that will have an impact on us. But the series of measures will directly affect millions of Canadians. We’re going to fight these tariffs with countermeasures. We are going to protect our workers. And we are going to build the strongest economy in the G7,” Carney said.
Today's Headlines ߲ݴýletter
Get our free morning newsletter
Error! Sorry, there was an error processing your request.
There was a problem with the recaptcha. Please try again.
You may unsubscribe at any time. By signing up, you agree to our and . This site is protected by reCAPTCHA and the Google and apply.
Today's Headlines ߲ݴýletter
You're signed up! You'll start getting Today's Headlines in your inbox soon.
Want more of the latest from us? Sign up for more at our newsletter page.
Mike Pearson is a reporter with Metroland, primarily covering
Haldimand County and Glanbrook. Reach him at mipearson@torstar.ca.
Your gift purchase was successful!Your purchase was successful, and you are now logged in. You will also start receiving our free morning newsletter soon.
To join the conversation set a first and last name in your user profile.
Sign in or register for free to join the Conversation