(Bloomberg) -- Canada has effectively suspended almost all of its retaliatory tariffs on US products, tamping down inflation risks and improving its growth outlook, according to Oxford Economics.
The government imposed new import taxes of 25% on about C$60 billion ($43 billion) of US-made goods in March in response to the first round of tariffs from the Trump administration. Canada also retaliated against US auto tariffs in early April by putting its own levies on US vehicles.
But Prime Minister Mark Carney’s government then announced a six-month tariff exemption for products used in Canadian manufacturing, processing and food and beverage packaging, and for items related to health care, public safety and national security. Automakers got a break, too: companies that manufacture in Canada, such as General Motors Co., are allowed to import some vehicles into Canada tariff-free.
Those exemptions mean Canada’s tariff-rate increase on the US is “nearly zero,” according to calculations by Oxford.
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