The Globe and Mail reports in its Friday edition that Prime Minister Mark Carney imposed targeted tariffs on U.S.-made automobiles in response to President Donald Trump's trade war. The Globe's Robert Fife and Eric Atkins write that Mr. Trump's global auto tariffs, affecting over $460-billion (U.S.) in imports, led to Stellantis temporarily halting production at assembly plants in Windsor, Ont., and Mexico, resulting in 3,200 layoffs in Canada, 2,600 in Mexico and 900 at U.S. factories. Countertariffs pose risks for Canada, potentially increasing costs for businesses and consumers and provoking the U.S. to escalate the trade war. Mr. Carney announced 25-per-cent tariffs on non-Canadian parts of American-made cars under the United States-Mexico-Canada trade agreement, mirroring Mr. Trump's auto tariffs on Canada and Mexico. The tariffs would impact American cars not compliant with USMCA (now called CUSMA), but not auto parts or Mexican-made cars. Mr. Carney stated that Canada will respond to the U.S. by imposing 25-per-cent tariffs on non-CUSMA-compliant vehicles imported from the U.S. However, these tariffs will not apply to auto parts, recognizing the advantages of the integrated production system.
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