The new U.S. tariffs impose 50% duties on about $20 billion of Canadian exports, covering products including wine, furniture, dairy, cement, clothing, and hockey equipment. Unlike earlier measures, the latest tariffs do not exempt goods covered by the U.S.-Mexico-Canada trade agreement.
Canada plans to respond with tariffs on U.S. steel, electronics, appliances, dairy products, agricultural equipment, and pulp and paper.
Auto Stocks Are Back in the Crossfire
Ford Motor Company (F), one of the largest U.S. automakers, and General Motors Company (GM) are among the companies investors may want to watch closely. One of the main sticking points in the failed negotiations involved larger vehicles. Canada wanted favorable tariff treatment for medium- and heavy-duty trucks, but the U.S. pushed back.
Carney said the U.S. proposal would have excluded Canadian-made Ford F-350, F-450, and F-550 trucks, along with GM’s Silverado. That could make those vehicles more expensive or less competitive in the U.S. market.
