As U.S. President Donald Trump’s 25 per cent tariff on global auto imports takes effect, Canada’s industry minister says she has received assurances auto companies in this country won’t move their business elsewhere.
Speaking to CTV News chief political correspondent Vassy Kapelos in an interview on CTV’s Power Play Thursday, Anita Anand says she spoke to auto companies, and “every one of them” have indicated they do intend to stay in Canada.
“They do intend to produce in Canada, and that they want to work with the Government of Canada to ensure that that continues to be possible,” Anand said.
Trump’s 25 per cent tariffs on all foreign-made automobiles are in effect as of midnight Wednesday, though the U.S. administration has yet to “establish(es) a process” to tax exclusively the non-American vehicle components of CUSMA-compliant products.
In response, Prime Minister Mark Carney announced Thursday that Canada will slap 25 per cent tariffs on all U.S. vehicles not compliant with CUSMA. Carney said Canada’s levies will not affect auto parts, nor would they apply to vehicles from Mexico.
Trump has been explicit in trying to justify auto tariffs by saying he wants to move the sector from Canada and other countries back to the U.S. Anand said her conversations with auto companies were about “ensuring that the auto manufacturers know that the Canadian government will be there for them to continue to develop, manufacture and invest in Canada.”
“We have agreements in place with the auto manufacturers. That’s our Strategic Investment Fund, and we will continue to ensure that we come forward to maintain a healthy and vibrant auto manufacturing sector,” she told Kapelos.
Anand also said the government would be creating a “remission framework” that will offer relief for auto manufacturers as long as they continue their business in Canada.
When asked for more details about the framework, Anand said they are still being ironed out as the government will consider feedback from the companies and other key stakeholders.
She did point out that providing loans is not part of the framework at this time.
You can watch CTV Power Play’s full interview with Industry Minister Anita Anand at the top of this article.
With files from CTV News’ Spencer van Dyk
