OTTAWA (Reuters) – Canada will allow some relief to domestically-based automakers and manufacturers in specific sectors from counter-tariffs provided they meet certain conditions, the Finance Ministry said on Tuesday.
Canada has slapped a range of counter-tariffs on the U.S. in response to President Donald Trump’s tariffs on steel, aluminum, cars and auto parts. Some industry groups and companies have said the counter-measures could be detrimental.
The impact of the trade war between the U.S. and Canada is already evident, with some Canadian companies shedding jobs and some forecasting drops in sales and profits.
Canada-based auto manufacturers will be allowed to import a certain number of U.S.-assembled, free-trade-compliant vehicles if they continue to produce vehicles locally and complete planned investments, the Finance Ministry said.
“Our counter-tariffs won’t apply if they (automakers) continue to produce, continue to employ, continue to invest in Canada,” said Prime Minister Mark Carney at an election event on Tuesday.
“If they don’t, they will get 25% tariffs on what they are importing into Canada,” he said.
The Finance Ministry, in its statement, also said the government would provide six-month relief for goods imported from the U.S. that are used in Canadian manufacturing, processing and food and beverage packaging.
This relief will also be extended to companies that import from the U.S. to support public health, healthcare, public safety, and national security objectives.
(Reporting by David Ljunggren and Promit Mukherjee; Editing by Chizu Nomiyama and Rod Nickel)
