Tariffs Hit Canadian Truck and Bus Makers Hard as New Rules Take Effect

New tariffs on foreign imports of trucks and buses, imposed by Donald Trump, are set to significantly impact Canadian manufacturers, raising costs and complicating trade under the Canada-U.S.-Mexico Agreement.

• Effective immediately, the U.S. has imposed a 25% tariff on medium and heavy-duty trucks and a 10% tariff on buses, impacting Canadian manufacturers reliant on exports.
• The tariffs are part of a national security strategy by Donald Trump, aiming to bolster U.S. manufacturing and reduce reliance on foreign parts, particularly from Mexico.
• Exemptions are provided for trucks traded under the Canada-U.S.-Mexico Agreement, but the 25% tariff will still apply to non-American parts, complicating trade dynamics.