Canadian vehicle and auto parts exports were hit with over US$380 million in tariffs in July, marking a sharp increase as U.S. trade levies took full effect.
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According to a recent analysis by Anderson Economic Group, the U.S. imposed US$1.1 billion in tariffs on vehicles imported from Canada and Mexico in July, with more than US$311 million targeting Canadian-made vehicles alone. This amount represents about 26% of the total dutiable value of Canadian vehicle exports. Meanwhile, tariffs on Canadian auto parts reached US$72 million—equivalent to 36% of their dutiable value.
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The firm notes that July saw a significant change from the previous three months, during which U.S. Customs had been broadly allowing tariff exemptions under the Canada-United States-Mexico Agreement (CUSMA). However, that practice appears to have ended, as the share of Canadian vehicles qualifying for exemptions dropped dramatically—from 99% to just 36%.
Patrick Anderson, CEO of Anderson Economic Group, warned that these rising costs will likely be passed on to consumers in the form of higher vehicle prices.
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