Canada is taking action against new tariffs imposed by the U.S. on Canadian goods, including a 25% tariff on automobiles, as well as steel and aluminum. Prime Minister Mark Carney has outlined a series of countermeasures to protect Canadian workers and businesses. These include a 25% tariff on non-CUSMA-compliant fully assembled vehicles and non-Canadian, non-Mexican content in CUSMA-compliant vehicles imported from the U.S. All revenue generated from these tariffs will go directly to support Canadian auto workers.
In addition to these measures, the government is rolling out enhanced support for workers impacted by the tariffs. This includes temporarily waiving the one-week Employment Insurance waiting period, suspending rules around severance pay for six months, and increasing regional unemployment rates to make it easier for workers to access benefits. The government is also offering significant support to businesses, including deferring corporate income tax payments and GST/HST remittances until June 30, 2025, providing up to $40 billion in liquidity.
These actions are part of Canada’s broader strategy to defend its economy and respond to the U.S. tariffs on various Canadian goods. Despite these challenges, Canada remains committed to safeguarding its workers, businesses, and overall economic strength in the face of U.S. trade restrictions.
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