The Finance Department said its 25 per cent auto tariffs, launched in response to a similar policy in the U.S., will apply beginning on Wednesday to U.S.-made vehicles that do not comply with the U.S.-Canada-Mexico free trade agreement. U.S.-made vehicles that do qualify for the free-trade agreement will be tariffed on the value of the parts that come from outside Canada and Mexico. (The Logic)

Talking point: Assembled vehicles, not auto parts, face 25 per cent charges when they are imported into Canada, a move some hope will help protect manufacturers from the escalating cost of parts. Still, the policy will add additional red tape at the border, where vehicles are already piling up as border agents try to determine how to apply tariffs on the U.S. side of the border. Trump indicated on Wednesday that he will pause reciprocal tariffs on some countries that have not retaliated against new U.S. trade policies, but the previously announced auto tariffs remain in place. Canada plans to keep its own auto tariffs “until the U.S. eliminates its tariffs against the Canadian auto sector,” the Finance Department announcement said.