U.S.-Canada trade tariffs latest update: Impact on the auto care industry
AIA Canada is actively working to combat the trade war with the United States by advocating for the auto care sector and protecting industry interests. We are engaging with key decision-makers, providing critical updates to our members, and ensuring that the voices of Canadian businesses are heard in this ongoing trade crisis.
Today, at 12:01am, President Donald J. Trump proceeded with implementing a 25 per cent tariff on all Canadian imports, with a 10 per cent tariff on energy, and critical minerals effective immediately. These measures threaten jobs, increase consumer costs, and disrupt the integrated North American supply chain, particularly in the vehicle manufacturing sector.
In response, Canada announced a 25 per cent retaliatory tariffs on $155 billion in United States imports, starting today with $30 billion in goods, followed by another $125 billion in 21 days. This will remain in place until the United States trade action is withdrawn. In addition, the federal government is in discussions with the provinces and territories to pursue several non-tariff measures. The government will also challenge these illegal actions by filing a dispute resolution claim with both the World Trade Organization (WTO) and under the USMCA. The government plans to expand EI benefits and offer support for affected businesses but no other information related to this is available at this time.
The first list of affected items is available here including key auto care industry concerns such as retreaded/used rubber tires and various hand tools (handheld, pneumatic, hydraulic, and self-powered tools, drills, screwdrivers, vices, clamps, etc.).
Negotiation outlook
AIA Canada has been in regular contact with the Department of Finance since the announcement of potential tariffs last month. We will be present on an industry wide stakeholder call later today where we will receive a direct update on next steps.
The second list of items related to retaliatory tariffs, covering the remaining $125 billion in goods, is anticipated soon. Once released, we will review its contents and provide an updated notice highlighting items relevant to our members.
In the meantime, please feel free to share any concerns with Emily Holtby, AIA Canada’s Vice President, government relations, at emily.holtby@aiacanada.com.