Canadas auto sector weighs difficult new reality under Trumps tariffs – National [Video]

It’s been about one week since the tariffs imposed by U.S. President Donald Trump on the North American auto sector took effect and those within the Canadian industry say so far, confusion is what’s most prominent.

The 25 per cent tariffs went into effect April 3, putting a duty on all foreign-made vehicles entering the U.S., though automakers compliant with the terms of the Canada-U.S.-Mexico Agreement (CUSMA) can deduct the value of U.S. content.

Canada also imposed its own duty of 25 per cent on U.S.-assembled vehicles, though it too will allow importers to deduct the value of Canadian and Mexican content under CUSMA.

“So what we’re seeing immediately in terms of reaction is companies are taking a moment to just try and understand what the lay of the land is, what exactly the rules are, and then figure out what the path forward is for future exports into the United States,” said Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers Association (CVMA).