DiscoverCanada Tariff News and TrackerUS Imposes New Tariffs on Canadian Vehicles and Parts Under Section 232 Trade Expansion Act for National Security
US Imposes New Tariffs on Canadian Vehicles and Parts Under Section 232 Trade Expansion Act for National Security

US Imposes New Tariffs on Canadian Vehicles and Parts Under Section 232 Trade Expansion Act for National Security

Update: 2025-11-03
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Listeners, today’s Canada Tariff News and Tracker brings you the latest developments on U.S. tariff policy and what’s happening between Washington and Ottawa—especially with the Trump administration in the spotlight once again.

Effective November 1, 2025, new tariffs have gone live on U.S. imports of medium- and heavy-duty vehicles, parts, and buses under Section 232 of the Trade Expansion Act. These tariffs were implemented following an investigation that concluded such imports are essential to U.S. national security—with particular focus on their role in military, emergency response, and freight applications. The new measures are aimed at boosting the market share of American-made vehicles, targeting an ambitious goal of 80 percent of the U.S. market. As for what’s covered, the tariffs specifically impact vehicles and parts classified as Class 4 through 8, plus associated bus products. Direct identification and substitution manufacturing drawback relief is now also available for these tariffs, liberalizing how Canadian auto and vehicle exporters approach U.S. customs duties.

For the steel and aluminum sector, listeners should note that the Section 232 tariff rates generally stand at 50 percent, but rates as low as 25 percent are available for some countries. Critically for Canada, U.S.-Mexico-Canada Agreement-qualifying steel that is melted and poured in Canada or Mexico—and used in U.S. vehicle manufacturing—is eligible for a reduced tariff rate. The same goes for aluminum smelted and cast in Canada or Mexico. Commerce is now authorized to lower these tariffs no lower than 25 percent, an option that directly benefits Canadian producers supplying U.S. auto or heavy vehicle makers.

Meanwhile, in headline news, the future of U.S.-Canada trade talks remains up in the air as President Trump’s latest tariff threats head to the Supreme Court. According to CBC News, Trump recently announced his intention to increase tariffs on Canada by 10 percent; however, there’s still no official word on which tariff, nor any formal notice to Ottawa. Trump’s Treasury Secretary signaled that the 10 percent tariff hike has not yet been enacted, only threatened, and it might never be formalized—meaning uncertainty continues to cloud cross-border trade planning.

Cross-border industry experts are warning exporters on both sides to stay alert as Supreme Court hearings on Trump’s trade strategy are set to begin, which could lead to pivotal changes depending on the outcome.

That wraps up our Canada Tariff News and Tracker for today. Thank you for tuning in and don’t forget to subscribe for your next update. This has been a quiet please production, for more check out quiet please dot ai.

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US Imposes New Tariffs on Canadian Vehicles and Parts Under Section 232 Trade Expansion Act for National Security

US Imposes New Tariffs on Canadian Vehicles and Parts Under Section 232 Trade Expansion Act for National Security

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