President Trump announced a slew of tariffs on imports last week, with a proposed 35% tariff on Canadian goods, including in the automotive sector, which could deeply affect American drivers. Trump announced the tariffs on Truth Social with screenshots of a letter sent to Canada’s prime minister,

Tariffs—taxes placed on imported goods—are one of the oldest tools in the United States' economic policy arsenal, dating back to the 18th century. Recently they've returned to the spotlight in a big way.

Canadian Prime Minister Mark Carney on Wednesday said that Canada will introduce a tariff rate quota for countries with which it has free trade agreements, excluding the United States, to protect the domestic steel industry.

Trump this spring imposed a 25% tariff on cars and car parts, including those from Canada. But certain cars and parts qualify for preferential treatment under the USMCA, meaning the 25% tariff applies only to the non-U.S. content of the automobile or part.

Canada’s steel industry fears that Chinese steel facing steep tariffs in the United States will be sent north and overwhelm the Canadian market.

Prime Minister wouldn’t say which tariffs may remain in place if a deal is reached with the U.S. but emphasizes that the countries are working toward a trade agreement

Prime Minister Mark Carney said Tuesday U.S. President Donald Trump seems wedded to tariffs and any trade deal with the Americans may include accepting some levies on exports. Former Conservative leader Erin O'Toole said Carney has ‘generally done a really good job’ resetting the tone of negotiations,