Canada’s Carney announces retaliatory measures against US autos

Canada was one of the ‘winners’ yesterday but that ignores auto tariffs, steel, aluminum and products not covered under USMCA. So while the news could have been worse, there is still plenty of pain to come.

With that in mind, Carney isn’t in the mood to back down:

• Canada will impose 25% tariffs on all vehicles imported from the US that are not compliant with USMCA
• Will develop framework for auto producers to avoid counter-tariffs, as long as they maintain their production and investment in Canada
• Tariffs will not affect auto parts and will not affect vehicle content from Mexico
• Every single dollar raised — about $8 billion — will go to auto workers and affected companies

The bolded part is an interesting strategy. It’s a threat to hit companies who move factories out of Canada and into the US.

This article was written by Adam Button at www.forexlive.com.