Ontario Premier Doug Ford says he was told by U.S. Secretary of Commerce Howard Lutnick that Canadian-made vehicles with 50 percent or more American parts will not face tariffs.
U.S. President Donald Trump signed an executive order Wednesday for 25 percent levies on automobile imports to the United States starting next week.
Lutnick called Ford later Wednesday to say that Canada would face a different rate but it was unclear when Canadian vehicles would see the tariff break.
Most of vehicles made in Canada are already constructed with more than half American parts as the North American auto industry is deeply integrated.
Ford says he wants to wait to respond to the latest tariffs until after April 2 when Trump is set to implement what he calls “reciprocal” tariffs by raising U.S. duties to match the tax rates that other countries charge on imports.
Prime Minister Mark Carney interrupted his election campaign Thursday and returned to Ottawa to lead a meeting of the Canada-U.S. relations cabinet committee.
