The latest: Canada to match U.S. auto tariffs
Posted Apr 2, 2025 03:37:13 PM.
Last Updated Apr 3, 2025 12:22:47 PM.
Prime Minister Mark Carney announced on Thursday that Canada will match U.S. President Donald Trump’s 25 per cent auto tariffs with a levy on vehicles imported from the United States.
Carney delivered his response after meeting virtually with provincial and territorial leaders.
Canada and Mexico were exempt from the latest round of reciprocal tariffs announced Wednesday by President Trump.
The document says goods imported under the existing continental trade deal will not face tariffs, while others will see a 10 per cent tariff.
Trump says he plans to proceed with a 25 per cent tariff on all foreign-made automobiles.
Trump held up a chart while speaking, showing the United States would charge a 34 per cent tax on imports from China, a 20 per cent tax on imports from the European Union, 25 per cent on South Korea, 24 per cent on Japan and 32 per cent on Taiwan.
Here’s the latest:
Canadian apparel company stock prices fall after tariff announcement – Thursday, 12:07 p.m. ET
Canadian apparel companies, including Aritzia and Lululemon, saw their stock prices slide in late-morning trading as investors reacted to the sweeping new tariffs announced by U.S. President Donald Trump on Wednesday.
Aritzia was the biggest loser on the TSX at noon, with shares down 20 per cent, while Lululemon shares were down almost 12 per cent on the Nasdaq.
The Canadian Press
PM Carney announces 25% tariff on U.S. vehicles in response to Trump’s auto levies – Thursday, 11:57 a.m. ET
Canada will match U.S. President Donald Trump’s 25 per cent auto tariffs with a levy on vehicles imported from the United States.
Carney huddled with Canada’s premiers Thursday to discuss Trump’s latest tariffs.
The Canadian Press
Stock markets in Canada and U.S. tumble after tariff announcement – Thursday, 9:51 a.m. ET
Stock markets in Canada and the U.S. plunged at the start of trading following the announcement of U.S. President Donald Trump’s latest tariff plan.
The S&P/TSX composite index was down 616.25 points at 24,690.93.
In New York, the Dow Jones industrial average was down 1,105.78 points at 41,119.54. The S&P 500 index was down 181.56 points at 5,489.41, while the Nasdaq composite was down 752.61 points at 16,848.44.
The move comes after Trump announced so-called “reciprocal tariffs” hitting just about every country around the world.
The Canadian Press
World reaction to Trump’s sweeping global tariffs – Thursday, 7:37 a.m. ET
Markets have skidded in Europe and Asia, and U.S. futures tumbled following the Trump administration’s announcement of big increases in tariffs on imports of goods from around the world.
Tokyo’s Nikkei index closed nearly three per cent lower this morning, with automakers and banks taking big hits.
U.S. futures are down nearly three per cent.
The Canadian Press
Carney meeting with Canada’s premiers, responding to latest U.S. tariffs today – Thursday, 5 a.m. ET
Prime Minister Mark Carney says U.S. President Donald Trump’s tariff regime will “fundamentally change the global trading system.”
Carney is meeting with Canada’s premiers today to discuss Trump’s latest tariffs.
Carney is expected to deliver his response to the duties after meeting virtually with provincial and territorial leaders.
The Canadian Press
Doug Ford joins Canada-U.S. council meeting after Canada secures tariff exemption – Thursday, 3 a.m. ET
Ontario Premier Doug Ford is expected to attend a virtual meeting of the Prime Minister’s Council on Canada-U.S. Relations on Thursday morning after Canada was exempt from new reciprocal tariffs announced yesterday by U.S. President Donald Trump.
Canada was left off a lengthy list that Trump unveiled Wednesday, showing the tariff levels that various countries would face.
The Canadian Press
Trump’s tariffs trigger 2-week shutdown at Stellantis assembly plant in Windsor, Ont. – Wednesday, 11:58 p.m. ET
Officials with Unifor Local 444, which represents workers at Stellantis’ Windsor Assembly Plant, say they have received notification from the automaker that the facility will be shut down for two weeks, starting April 7.
They were told multiple factors were at play, but the primary driver was Wednesday afternoon’s announcement from Trump on U.S. tariffs.
CityNews
Senate passes resolution that would thwart Trump’s ability to impose tariffs on Canada – Wednesday, 7:45 p.m. ET
The resolution delivers the president a rare rebuke just hours after he unveiled sweeping plans to clamp down on international trade. It would end the presidential emergency declaration on fentanyl that underpins tariffs on Canada.
The legislation has little chance of passing the Republican-controlled House and being signed by Trump, but it shows the limits of Republican support for Trump’s vision of remaking the U.S. economy by restricting free trade.
The Associated Press
Prime Minister Carney says Trump’s tariffs will fundamentally change global trading system – Wednesday 7:10 p.m. ET
Prime Minister Mark Carney says U.S. President Donald Trump’s tariff regime will “fundamentally change the global trading system.”
Carney, who is meeting with his cabinet committee on Canada-U.S. relations in Ottawa, says Canada will fight American tariffs with countermeasures after the country was excluded from a list of new reciprocal tariffs announced by Trump today.
The Canadian Press
Canada and Mexico not on reciprocal list – Wednesday, 5:30 p.m. ET
A White House fact sheet clarifies that Canada and Mexico are not subject to the reciprocal tariff order outlined by U.S. President Trump.
“For Canada and Mexico, the existing fentanyl/migration IEEPA orders remain in effect, and are unaffected by this order. This means USMCA compliant goods will continue to see a 0% tariff, non-USMCA compliant goods will see a 25% tariff, and non-USMCA compliant energy and potash will see a 10% tariff. In the event the existing fentanyl/migration IEEPA orders are terminated, USMCA compliant goods would continue to receive preferential treatment, while non-USMCA compliant goods would be subject to a 12% reciprocal tariff.”
CityNews
Ford says ‘positive sign’ Canada not on list seen – Wednesday, 5:16 p.m. ET
Ontario Premier Doug Ford called it a “positive sign” that Canada was not on the reciprocal tariff list produced by U.S. President Donald Trump during his announcement. However, when pressed by reporters at Queen’s Park, Ford could not or would not say what Canada is actually facing in terms of tariffs.
“The positive thing that I saw was we weren’t on that list,” Ford said.
CityNews
Countries to get charged ‘kind tariffs’ – Wednesdsy, 4:54 p.m. ET
Trump says the U.S. will charge discounted reciprocal tariffs for many countries, most getting half off what they charge, calling them “kind tariffs.”
“If you want your tariff rate to be zero then you build your product right in America.”
Canada and Mexico are not subject to reciprocal tariffs, continuing USMCA exemptions, according to various reports. The Canadian dollar ended at a late-day high of 70.25 cents U.S.
CityNews and Mike Eppel
Trump says U.S farmers ‘brutalized’ by Canadian dairy industry – Wednesday, 4:36 p.m. ET
Trump says U.S. farmers are being “brutalized” by Canada’s dairy industry.
“Canada by the way imposes a 250 to 300 per cent tariff on many of our dairy products. They do the first little carton of milk at a low price and then it gets up to 275, 300 per cent.”
“We cannot pay the deficits of Canada and Mexico and all these other countries.”
“We have to take care of our people and we’re going to take care of our people first.”
The International Dairy Foods Association (IDFA) published a statement on March 7, saying the U.S. “has never gotten close to exceeding” the quotas which would trigger those dairy tariffs.
CityNews
Fact Check: Canada trade deficit not $200B – Wednesday, 4:28 p.m. ET
Canada’s trade deficit with the U.S. is NOT nearly $200 billion as the President claims.
In fact the US Trade Representative’s office puts the number at $63 billion.
The reason for the deficit is that the US buys a lot of our oil, natural gas and energy.
Cormac Mac Sweeney
Trump signs order for reciprocal tariffs “they do it to us, we do it to them” – Wednesday, 4:16 p.m. ET
President Donald Trump says as of midnight, the United States is imposing 25 per cent tariffs on all foreign made automobiles. There was no indication if Canada or other countries would be exempted.
“For decades our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike,” said Trump.
“Now it’s our turn to prosper.”
“Jobs and factories will come roaring back to our country and you’re seeing it happening already. We will supercharge our domestic industrial base, we will pry open foreign markets and break down foreign trade barriers, and ultimately more production at home will mean stronger competition and lower prices for consumers. This will be indeed the Golden Age of America.”
“For decades the United States slashed our trade barriers on other countries while those nations placed massive tariffs on our products and created non-montetary barriers to decimate our industries … This all happened with no response from the United States of America, but those days are over.”
“Such horrendous imbalances have devastated our industrial base and put our national security at risk.”
“Effective at midnight, we will impose a 25 per cent tariff on all foreign made automobiles.”
CityNews
Timeline of Donald Trump’s trade war with Canada
For over a year before the November 2024 presidential election, Donald Trump had been signalling he planned to impose across-the-board tariffs if he won the United States presidency.
Here’s a timeline of the key dates in Trump’s tariff journey after he was elected president.
The Associated Press
Could Canada and the U.S. strike a zero-tariff deal?
Ontario Premier Doug Ford said he spoke with Prime Minister Mark Carney about that prospect on Wednesday morning ahead of President Donald Trump’s ominous Liberation Day announcement on sweeping new tariffs.
Ford suggested that Carney told him a zero-tariff situation was possible if Trump agreed to drop all tariffs.
“I had a conversation with the Prime Minister this morning, and I can tell you one thing, if he [Trump] dropped all the tariffs, we’d have zero tariffs,” Ford said
CityNews
Companies preparing for tariff turbulence
Impending U.S. tariffs have pushed Canadian companies to stockpile goods, cut back staff, put projects on hold and whatever else they think will help them survive the economic turmoil ahead.
For industries that rely on exports to the U.S., tariffs could be a major hit as customers south of the border may choose to buy fewer goods or switch to U.S. alternatives.
The Canadian Press
