Trump followed through on his threat to implement 25 per cent auto tariffs on non-U.S. made vehicles, starting at midnight.
On Wednesday, the Trump administration imposed so-called “reciprocal” tariffs by increasing U.S. duties to match the tax rates that other countries charge on imports. Follow along for live updates and analysis from the Star’s newsroom.
New wave of tariffs announced Wednesday
Trump announces reciprocal tariffs on countries around the world
U.S. will implement 25 per cent tariffs on foreign-made automobiles
The U.S. senate will vote on a resolution to block tariffs on Canada
Poilievre said he would renegotiate trade with Trump on Day 1
Wall Street falls in final hours of trading before Trump’s announcement
Doug Ford calls today “Termination Day,” saying American jobs will be lost
5:44 p.m. Industry leaders warn of economic ‘chain reaction’ due to auto tariffs
The head of the Canadian Chamber of Commerce slammed the tariffs, and said the rest of the world is now getting a taste of what Canada and Mexico have been facing for months.
“The world is waking up today to a reality that Canada has been living with for months,” said Chamber CEO Candace Laing.
“This chain reaction of tariffs and counter-tariffs will have a real and distressing economic impact on Americans, Canadians and the global economy. We hope that today’s positioning regarding Canada by the U.S. is part of a path to real negotiation, ultimately leading to long-term partnership focused on continental economic security and resilience.”
-From Josh Rubin
Flavio Volpe, representing Canada’s autoparts manufacturers, posted on X: “The. Auto. Tariff. Package. Will. Shut. Down. The. Auto. Sector. In. The. USA. And. In. Canada.”
“Don’t be distracted,” he said, adding 25 per cent tariffs are 4 times the 6-7 per cent profit margins of all the companies.
“Math, not art.”
-Tonda MacCharles
The bottom line for Canada from the White House is that the new “Liberation Day” tariffs that Trump announced today are not impacting Canada. However, the auto tariffs are slated to come in at midnight, and existing tariffs of 25 per cent tariffs on goods that don’t comply with the CUSMA deal, and 10 per cent on energy and potash that doesn’t comply, will remain. That’s according to the White House.
-From Alex Ballingall
5:40 p.m. Canada and Mexico spared from new round of tariffs targeting global allies
According to a “fact sheet” posted by the White House, the Administration will impose a baseline “10 per cent tariff on all countries” to take effect at 12:01 a.m. on April 5.
It will impose an “individualized reciprocal higher tariff on the countries with which the United States has the largest trade deficits” to take effect at 12:01 a.m. April 9.
Trump reserves the right to modify or escalate the tariff level depending on what steps trading partners take against or to align with the U.S.
It says that reciprocal tariffs will not stack on top of steel and aluminum or auto tariffs already hit, nor will these reciprocal tariffs hit other items Trump intends to penalize in the future, including copper, pharmaceuticals, semiconductors or lumber.
Specifically in Canada’s and Mexico’s case, it appears that Trump is not backing off his so-called “border” or “the existing fentanyl/migration” tariff orders which “remain in effect.”
However, remember, those tariffs were already slightly modified from 25 per cent across the board levy on all Canadian goods (with a lesser 10 per cent on energy and potash) to briefly exempt those that comply with the CUSMA’s rules of origin and other standards until midnight.
Now, the White House says there will be a 0 per cent tariff on goods that comply with the CUSMA, but goods that do not comply would be subject to a 12 per cent “reciprocal tariff.”
Trump is once again invoking emergency powers under the International Emergency Economic Powers Act, to levy the reciprocal tariffs to correct trade imbalances in the name of national security.
(That is the law that allows Congress to challenge a presidential declaration, as a group of Democratic Senators are trying to do.)
-From Tonda MacCharles
5:33 p.m. Canada’s response to tariffs coming tomorrow
A spokesperson from the PMO is now telling reporters that we shouldn’t expect details of the Canadian response to what happened today until tomorrow. So if there are any counter tariffs, they would be announced tomorrow, she says.
-From Alex Ballingall
5:24 p.m. Job losses, higher prices expected for Canada’s auto industry
The head of the association representing the Big Three U.S. auto makers in Canada wasn’t quite ready to breathe a sigh of relief, even though he said it could have been worse.
Because of the exception for CUSMA-compliant products, Canada’s automotive sector is better placed than other countries around the world, said Brian Kingston, president of the Canadian Vehicle Manufacturers Association.
“The only bright point here for Canada is that because of integrated nature of our supply chain, a very large proportion of the parts and components that go into vehicles built in Canada is American,” said Kingston.
Still, with other tariffs still looming, including potentially on automotive parts, the Canadian industry is far from out of the woods.
“These tariffs – and in particular if they move forward with automotive parts tariffs – are going to severely disrupt the supply chain over the better part of 60 years,” said Kingston, adding that higher prices for cars, along with job losses, are a likely result.
-From Josh Rubin
5:12 p.m. Carney to address the media
Prime Minister Mark Carney is now expected to address reporters briefly on his way into a cabinet committee meeting at about 5:45 pm EST. We’re told he won’t be taking questions on the way in, and that their meeting is expected to last about an hour to an hour and a half.
Carney, of course, is campaigning to keep power for the Liberals in the April 28 federal election, with a campaign that has so been dominated by questions and concerns about Trump’s economic aggression.
-From Alex Ballingall
5:07 p.m. Ontario premier says ‘stay tuned’ for tariff details as auto unions react
At Queen’s Park, Premier Doug Ford said it’s “pretty unclear” where Canada stands in terms of facing reciprocal tariffs — but he took heart from the chart Trump was holding up.
“The positive thing that I saw was we weren’t on that list,” Ford added. “We’re going to stay tuned.”
-From Robert Ferguson
Flavio Volpe, head of the Canadian Auto Parts Manufacturers Association, said in a statement on X that “Canadians sighing with relief for not being on this list should remember we still have border tariffs of 25%, auto tariffs of 25%, and steel and aluminum tariffs of 25%.”
He added it is “like dodging a bullet into the path of a tank.”
-From Tonda MacCharles
The head of the association representing non-U.S. auto makers in Canada blasted the tariffs. “Tariffs are taxes that hurt consumers by increasing costs, driving up inflation, and unfairly impacting workers on both sides of the border,” said David Adams, President and CEO of Global Automakers of Canada.
“At a time when automakers need certainty more than ever, we urge governments at all levels to consult with industry and think carefully about how to respond effectively to these unjustified tariffs, focusing on stability and maintaining competitiveness while minimizing unintended consequences.”
“Governments should look to long-term solutions to remove these tariffs, prioritizing the elimination of regulatory barriers to industry competitiveness and providing automakers with flexibilities to respond in these uncertain times.”
-From Josh Rubin
4:54 p.m. Trump finishes remarks
Trump reiterates his plan to produce “cars, ships, (semi-conductor) chips, airplanes, minerals and medicines that we need right here in America. The pharmaceutical companies are going to come roaring back.”
However still no clear indication what the reciprocal rate on Canada will be, although Canada was clearly in the USTR report, and crosshairs.
Trump has ended his announcement, taking no questions.
-From Tonda MacCharles
4:39 p.m. Punishing tariffs confirmed for global allies, but details unclear for Canada and Mexico
Trump held up a poster to display how the U.S. calculated other countries’ “unfair” tariffs and nontariff barriers to U.S. goods and announced he would match and halve the estimated rate. So he announced reciprocal tariff rates on China at 34 per cent, the EU tariff at 20 per cent, the UK at 10 per cent, India at 26 per cent, Japan at 24 per cent, South Korea at 25 per cent, Taiwan at 32 per cent.
But he did not reveal the particular rate for Canada, nor for Mexico.
The president did, however, make good on his threat to implement 25 per cent auto tariffs on non-U.S. made vehicles, starting at midnight.
There appear to be at least two pages listing reciprocal tariff rates, that have been handed out in the Rose Garden. Canada and Mexico are not listed for “reciprocal tariffs.”
Both continental neighbours of Trump, however, will be hit by the 25 per cent auto tariffs. It remains to be seen if the so-called “border tariffs” will also land.
-From Tonda MacCharles
Reacting to the 25-per-cent auto tariff Trump said is coming into effect at midnight, David Adams, the head of the Global Automakers of Canada said this will unfairly impact workers on both sides of the border. Adams urged governments in Canada to “think carefully about how to respond effectively to these unjustified tariffs” and look to “long-term solutions” to get them removed.
-From Alex Ballingall
4:27 p.m. Reciprocal tariffs announced on several countries
Trump announces “reciprocal tariffs” saying the U.S. will “calculate the combined rate of all their tariffs, non-monetary barriers and other forms of cheating,” setting the rate at “half” of what other countries charge the U.S.
The reciprocal tariff rates we see are: China is 34 per cent, the EU tariff rate is 20 per cent. On the UK, it’s 10 per cent.
On India: 26 per cent.
On Japan, 24 per cent.
On South Korea, 25 per cent.
On Taiwan, 32 per cent.
-From Tonda MacCharles
This feels very Trumpy to me: a global audience fraught with anxiety about how his actions will vapourize wealth and jobs, learning how hard they’re getting hit by squinting at a placard the president is clutching in the White House Rose garden.
-From Alex Ballingall
4:20 Questions remain on auto tariffs
The 25 per cent auto tariff Trump just announced that takes effect at midnight was first teased out by the president earlier this year. It was announced last week in an executive order, and then put on pause until April 3. At this point the big question is how much more is to come.
-From Tonda MacCharles
Trump’s pitch here is really to return American economic policy to the 19th century, when — in his view — the U.S. was rich because of high tariffs. That was an era in Canada when tariffs and trade with the U.S. was a huge concern, often framed in terms of Canadian independence from the U.S. (and closeness with Britain).
-Alex Ballingall
4:19 p.m. Trump singles out Canada on trade
One line that will sting on this side of the border, as Trump announces 25-per-cent tariffs on “all foreign-made automobiles,” is when he says that friendly nations are worse than hostile nations when it comes to trade. “In many cases, the friend is worse than the foe, in terms of trade.”
He then makes his first mention of Canada, citing tariffs on dairy products. “It’s not fair to our farmers, it’s not fair to our country,” he says, repeating his claim that the US is “subsidizing” Canada to the tune of US$200 billion a year.
That’s a false claim, since the U.S. is not paying Canada directly in a way that can be described as a subsidy. He does complain about low military spending in Canada, as well as the U.S. trade deficit that is based largely on how much oil Canada sells to the U.S.
