Canada offers tariff relief to automakers maintaining domestic commitments
Published: 11:14 15 Apr 2025 EDT
Canada has announced that it will exempt certain automakers from some of the retaliatory tariffs it recently imposed on US imports.
This comes in response to the 25% tariffs the US placed on Canadian automobiles and auto parts earlier in April 2025, which prompted Canada to implement retaliatory measures.
Ottawa said on Tuesday that companies that maintain production and investment commitments in Canada will be allowed to import a limited number of US-built, CUSMA-compliant vehicles tariff-free.
The volume permitted will be adjusted based on their level of Canadian operations.
The government also announced a temporary six-month tariff relief on US imports used in Canadian manufacturing, food and beverage packaging, and essential services such as health care and public safety.
This short-term support is intended to ease supply chain pressures while businesses shift toward domestic sourcing where feasible.
Additional measures may be introduced, with the federal government working alongside provinces and territories to ensure coordinated support nationwide.
“From day one, the government has reacted with strength and determination to the unjust tariffs imposed by the United States on Canadian goods,” Canada’s minister of finance François-Philippe Champagne said in a statement.
“Today, we’re giving Canadian companies and entities more time to adjust their supply chains and become less dependent on US suppliers. This will help make our economy stronger and more resilient.”
