The Canadian government announced “remission” for the industry, in the middle of the Donald Trump tariff war. French Minister of Finance, François-Philippe Champagne, announced: “We give Canadian companies and entities more time to adjust their supplier chains and become less dependent on US suppliers.”
The The Canadian government announced three new measures Including pauses and decreased tariffs and loans in retaliation in the placement of strict tariffs Donald Trump on a maple country.
Surprisingly, Canadian annual inflation slowed to 2.3%in March, three notches below the previous month, largely helped lower gasoline prices and travel tour, which showed up on Tuesday.
US President Donald Trump’s tariffs on various Canadian imports and Canadian retaliation measures are expected to increase prices, but also suppress economic growth.
Also read | Planning to buy Canada: virtual assistant for iPhone for iPhone US reveals a shopping list
What are the measures announced by Canada?
In the apparent remuneration system for Canadian automakers, the Ministry of Finance, led champagne, announced an incentive for cars that continue to produce cars in Canada and meet their investment obligations
Car support through reduced tariffs
In the apparent remuneration system for Canadian automakers, the Ministry of Finance reported a champagne incentive for automotive workers who continue to produce cars in Canada and meet their investment obligations. These manufacturers will be able to import a limited number of US vehicles without paying other tariffs, supporting domestic production while maintaining cross -border trade.
The official statement that described it as a “remission based on performance” said: “As recognition of the integrated nature of the North American automotive sector, this will allow cars that continue to produce vehicles in Canada in Canada.
Also read | Canada has an answer to energy supplies in AI plant, says former CEO
“Remise awarded to these companies is conditional on these automakers who continue to produce vehicles in Canada and finishing planned investments.” A statement has been added.
The Canadian government also warned an automobile manufacturer that the number of vehicles without tariffs that the Canadian company can allow from us will be reduced if Canadian production or investment is reduced.
Canada stops tariffs for 6 months on key US goods
The Canadian government is declared a temporary six -month relief from tariffs (special import tax) for certain goods from the US.
- Are used by Canadian manufacturers (such as factories or kitchen processors)
- It is used for health and safety (such as hospitals, long -term homes, fire brigades)
Why will Canada stop tariffs?
The Canadian Minister of Finance announced that the aim of a six -month pause is to help these businesses and organizations remain competitive and continue smoothly, especially if it depends on US stocks.
But it’s just temporary – just for 6 months.
This is to provide these groups time to adjust their supplier chains and ideally start using Canadian products instead.
Also read | Tariffs of Canadian brushes’ Trump with comic book supervillain; Elon Musk Sidekick
Canada announces a loan on a large enterprise loan
The Canadian government offers loans to help large and important Canadian businesses over water during the business crisis – if they have committed themselves to maintain employment and operations in Canada.
The Canadian government launched a new program called Large Business Tariff Loan (Letl). “Those who have already participated in insolvency proceedings before this crisis will not be eligible,” the government warned.
Also read | Canadian Prime Minister Carney visits Baps Temple on RAM Navami, writes it in the book of guests
This program is designed for large Canadian companies that:
- Play an important role in food, energy, economy or national security,
- Tries to get regular loans due to business dispute with USA
- And were financially healthy before the commencement of this trade.
The Tariff War Us-Canada
On March 4, 2025, the United States deposited 25% of tariffs on Canadian goods under the International Emergency Economic Power Act, which made Canada retrieve with 25% of $ 30 billion imports, including spirits, appliances, clothing and motorcycles.
Shortly after March 12, the US introduced 25% of tariffs on all steel and aluminum products, to which Canada reacted reciprocal 25% of $ 12.6 billion, $ 3 billion, aluminum, and another $ 14.2 billion, such as tools, computers and sports equipment.
Trade tension was escalated on 3rd April, when the US deposited 25% of tariffs on Canadian cars, related to the content of vehicles compatible with CUSMA.
Also read | Trump tariffs: Canada store 25% of tariffs on vehicles imported from us
Canada faced April 9 by depositing 25% of tariffs on American vehicles unroacked by American vehicles and non -refundable and non -sexy content of vehicles compatible with CUSMA, which intensifies the ongoing commercial dispute between the two nations.
The tariff war effectively threatens the highly integrated supply chain in the North American automotive industry, where parts often cross the boundaries several times before the final assembly.
Also read | Mark Carney will face Trump. Canada prepares countermeasures on American tariffs
Analysts warn that these tariffs could add thousands of dollars to the cost of vehicles, disrupt production and endanger Canadian jobs in the car industry that employ more than 125,000 people.
(Tagstotranslate) Canada
