[Dippy]

Just shortly after US President Donald Trump announced new tariffs on imported cars, Canada has responded in its own way. Canada has now announced a 25 percent tariff on fully assembled cars and trucks imported into Canada from the United States. Canadian Prime Minister Mark Carney called the move a response to Trump's “series of unwarranted and unjustified tariffs.”

The Canadian Government said that every single dollar made from these tariffs will be used to support their auto workers. Five hours before Trump’s tariffs took effect, Stellantis closed its car factory in Windsor, Ontario, for two weeks so it could assess the effects of the tariffs, idling about 3,600 employees. This move left a lot of people in Windsor shocked.

Auto experts had warned that factory closings such as this would come within weeks, not days after the US auto tariffs would be announced.

The Canadian Prime Minister estimated a collection of about $5.7 billion from the retaliatory tariffs on top of the $42 billion or so he said Canada would generate from the tariffs it imposed on March 4.

“We take these measures reluctantly,” Mr. Carney said at a news conference after a meeting with Canada’s premiers. “And we take them in ways that are intended and will cause maximum impact in the United States and minimum impact here in Canada.”

He added, “We can do better than the United States. Exactly where that comes out depends on how much damage they do to their economy.”

It is interesting to note that Canada’s tariffs would not apply to auto parts, and the country would still allow companies that make cars in Canada — Stellantis, Ford, General Motors, Honda and Toyota — to import vehicles built in the United States without paying tariffs.

Canada is the largest importer of cars and trucks made in the United States, and 90 percent of production done in factories in Canada goes to the United States. The automotive trade between the two countries is said to be balanced, with the US having some surplus in recent years.

Souce: The New York Times

Link to Team BHP news

[yedukrishnan199]

A tit for tat! If every country where the US has imposed tariffs imposes counter tariffs, it just makes everything expensive for everyone, and I think the US will be the one affected the most. We will see how this pans out and if countries come to terms with the US to remove tariffs or impose counter tariffs. Anyways, the US market has witnessed its single largest fall since 2020, so it seems the tariffs are having a major impact on the US.

[svsantosh]

I find that move weird considering Canada is making the following cars inside Canada and exporting them to USA. One of the possible outcomes of this tariff war is business will improve around the world because, case in point, Canada and Mexico will need to find more markets to sell their products now, lower prices. Same with China and Vietnam and India too - if USA is not going to accept 30% of the produce (approx back of the envelope calculation) - these products will need to be sold at cheaper prices else where.

Time will tell.

https://mobile.guideautoweb.com/en/a...ld-in-the-u-s/

[SmartCat]

Originally Posted by svsantosh

I find that move weird considering Canada is making the following cars inside Canada and exporting them to USA.

If US puts 25% automotive tariffs on Canada and the latter retaliates with same percentage/sector and stops at that, then it is a guaranteed victory for USA in the long run. Simply because Canada automotive exports to USA is $35 billion while its automotive imports from USA is just $15 billion. It will be equal retaliation only if Canada applies 25% tariffs on other imports from USA worth approximately $20 billion.

However, this move by Canada gives some relief to manufacturers in Canada because some made-in-Canada production meant for USA will be sold within Canada, since they can easily compete with imported from USA cars on price.

[Kosfactor]

93% of car exports from Canada are to the United states according to a BBC article.

See the optics of this is very different- its an 80-20 issue. Other countries are charging X % import duty on US made products, therefore US will charge X % on other country products coming in.

I don't think people outside US (Inside the US they are usually ignorant of such things , dont matter to them anyways) can even comprehend how big a consumer every average American is.

[guruji]

They could also cut production, which will lead to job losses, which will lead to further reduction in overall economic activity and the spiral goes on. In the end every one ends up on the losing side.

Originally Posted by svsantosh

I find that move weird considering Canada is making the following cars inside Canada and exporting them to USA. One of the possible outcomes of this tariff war is business will improve around the world because, case in point, Canada and Mexico will need to find more markets to sell their products now, lower prices. Same with China and Vietnam and India too - if USA is not going to accept 30% of the produce (approx back of the envelope calculation) - these products will need to be sold at cheaper prices else where.

Time will tell.

https://mobile.guideautoweb.com/en/a...ld-in-the-u-s/

[Sharanam]

Originally Posted by guruji

They could also cut production, which will lead to job losses, which will lead to further reduction in overall economic activity and the spiral goes on. In the end every one ends up on the losing side.

It`s not that USA is not going to accept these products. They need it. So the American customer will have to pay a higher price. But as long as the currency of exchange is going to be the dollar, the US can print more of it and the other party will be at a disadvantage.

[Sensible_Speed]

Originally Posted by yedukrishnan199

A tit for tat! If every country where the US has imposed tariffs imposes counter tariffs, it just makes everything expensive for everyone, and I think the US will be the one affected the most. We will see how this pans out and if countries come to terms with the US to remove tariffs or impose counter tariffs. Anyways, the US market has witnessed its single largest fall since 2020, so it seems the tariffs are having a major impact on the US.

Tit for tat works if you can afford the economic privilege of a first world country. Coming from India, any tariffs will lead to a rise in prices of commodities, stretching our wallets thinner than they already were after the extended bout of inflation for the last two years. People will have to cutback on a lot of purchases that might be indispensable today. Trump is using exactly this tactic to extract as much as he can from countries that cannot afford it. This is neo-colonialism at its finest.

I hope countries of the global South, such as India and ASEAN link tighter together and work a lasting solution around this to protect themselves from any future shocks from deranged politicians like this.

[yedukrishnan199]

Originally Posted by Sensible_Speed

I hope countries of the global South, such as India and ASEAN link tighter together and work a lasting solution around this to protect themselves from any future shocks from deranged politicians like this.

The US isn't as strong as it used to be. Other countries understand this and are retaliating. India is trying its best to get the tariffs reduced, unlike the others. Trump is a shrewd businessman, and he knows that at least a few countries will try to negotiate and get a bilateral deal set up.

However, despite the setbacks, India is still exploring ways to mitigate the impact, including diversifying its export markets and strengthening domestic industries. Some sectors may experience difficulties, but others could find opportunities amid the shifting trade landscape.

India's risk-neutral approach has always helped it avoid issues with other countries, and this stance will help it overcome any crisis should it arise around the world.

Meanwhile the aggressors, including the US and the ones retaliating, will suffer the brunt of the impact.

[ZenMaster]

Trying to predict what's going to happen because of Trump's unpredictable moves is like trying to catch a knife by its sharp edge.

Let's be honest, none of us really knows whats going to happen as a result of all this. All we can do it speculate away to our hearts content until one of the 100 theories and potential outcomes becomes right out of pure chance mostly and who ever guessed right can play the "I told you so" card.

One thing is sure, the people are going to bear the brunt of all this, the only question is how bad and for how long. Sure there could be huge growth and Victors at the end of the tunnel, except most probably the ones who went in strong won't be the ones who come out strong. Trump has basically just pulled the pin from a grenade and has started a passing the parcel game with it. What India must do is to ensure that we aren't holding the grenade when it blows up.

What's happening now could lead to a significant change in the world order and has the potential to decide what's going to happen around the world for the next 30-50 years.

[AirbusCapt]

Serves people right, those who voted for the orange baffoon. For a country who consumes a lot from outside because it is so expensive to manufacture within, it is a pretty dense move to tarriff imports. Lets wait for a few quarters to witness the true impact, no job growth plus job losses coupled with a horrible inflation. The stock markets have already shown his true worth, MANGA and what not!

I know a few Indian (US citizens) who had made a cushy business of importing daily essentials at a cheap price from China and India and then marking up the price to sell within the USA via ebay and the likes. These folks are now hugely affected with these sort of tarrifs.

[Turbanator]

Ford & Ram trucks are some of the best-selling models in Canada. For example, F-150 is built in USA but many components come from Canada. With US tariffs on parts from Canada, Ford will look elsewhere to get these components or pay the tariff. Similarly, when these Trucks are imported into Canada, with new tariffs they may not be able to compete with the likes of Tundra// Tacoma etc.

However, Canada is a very small market in comparison to the USA, 1,86 Million vs 15,86 Million. Out of the 15,86 Million vehicles, about 50% are Imported (per google). And this is what Trump is after to correct. He hopes that these manufacturers will have some kind of deal and promise to build plants and move production back to the USA.

For the Canadian market, not many US manufacturers will be keen to shift production or even continue existing. Hence, the cars from the USA will become expensive. Japanese and European manufacturers should be able to increase their share probably.

This sums up the situation for the Canadian manufacturers.

What is happening at Stellantis?

Stellantis is saying, Let’s see what the inventory looks like and let it adjust for two weeks. Let us do the math and figure out what it is now going to cost us to make the vehicle. What do we have to sell it for, and will people buy it?

https://www.nytimes.com/2025/04/05/w...-industry.html

[khanak]

What Canada really needs to do is remove the 100% tariffs on Chinese EVs or open the door for them to set up shop in the country. The tariffs were imposed to protect the American auto industry but that relationship seems to have soured with the new administration so why not find another partner? - https://www.cbc.ca/news/canada/canad...cles-1.7486204

Related news - About 6,000 autoworkers receive layoff notices as Stellantis announces two-week shutdown of Windsor plant - https://www.thestar.com/business/abo...f14a7856c.html

[volkman10]

Canada slaps 25% tariff on vehicles imported from the US.

Canadian officials say the tariff will stay in place until the US removes tariffs on Canadian-built cars.

The counter-tariff will take effect today as of 12:01 a.m. EDT, according to Canada's Department of Finance.

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