Canadian duties concern these cars imported from the USA, which do not meet the requirements of the free trade agreement between Canada, the USA and Mexico (Cusma). According to the public-speaking broadcaster Radio-Canada broadcast on Wednesday, in 2024 about 10 percent. American cars imported to Canada, i.e. about 67,000, did not meet the regulations of Cusma.
Dutch does not apply to cars and parts imported to Canada from Mexico. Customs also do not include car parts in line with Cusma, because Canada is aware of the benefits of the integrated production system – Carney explained last Thursday, informing about the decision about the duties.
However, customs were imposed on non -canada parts of American cars, if these parts do not meet the Cusma requirements.
Carney wrote on Tuesday on platform X that “President Trump caused this commercial crisis, and Canada corresponds to a thoughtful and decisive way“.
In Canada, the automotive sector has already felt the first effects of American duties – Stellantis factory, a brand producing brands such as Chrysler, Dodge, Fiat, suspended its activity on Monday. Also on Monday, information appeared in the media that, for example, the Canadian Toyota and Honda plants do not stop production and intend to operate normally as long as they have access to the necessary parts.
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The US does not apply duties on these parts of cars produced in Canada and Mexico, which come from the USA, and in the case of most cars produced in Canada, this means about half of the parts used in the production. As a result, Radio-Canada said, cars exported to the USA from Canada are covered by a reduced customs rate of approx. 15 percent.
