Canada says it has started imposing a 25 percent tariff on certain vehicle imports from the US, retaliating against a similar measure from its neighbour.
The tariffs – or import taxes – will be paid by Canadians who buy some automobiles or their parts from the US.
Confirming that the new taxes would apply after midnight on Wednesday, Canadian Finance Minister Francois-Philippe Champagne said his country was responding to “unwarranted and unreasonable” tariffs.
After returning to power, US President Donald Trump has unleashed a raft of these taxes, which apply globally and specifically aim at some of his top trading partners, including Canada.
He claims they will address unfairness in global trade.
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Canada was not directly hit by the new swathe of American tariffs, which also came into force at midnight.
But Ottawa was already in a row with Washington over Trump’s pre-existing policies, which tax a range of items brought across the border.
“We’ll protect our workers, our businesses, and our economy,” Champagne wrote on X, as he confirmed the start of the retaliatory Canadian measures.
A fact sheet from the government clarified that Canadian importers would be forced to pay a tax of 25 percent on certain automobiles or their parts:
The confirmation comes after Canadian Prime Minister Mark Carney, who is in an election fight, vowed a forceful response to Trump’s tariffs.