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flag U.S. auto tariffs on Canadian and Mexican vehicles rose sharply in July 2025, with exemptions under USMCA falling from 99% to 36%.

flag U.S. tariffs on Canadian auto parts and vehicles surged to over $380 million in July 2025, with $1.1 billion in total duties imposed on assembled vehicles from Canada and Mexico. flag The share of Canadian vehicles exempt from tariffs under the USMCA dropped from 99% to 36%, as temporary exemptions ended. flag Analysts predict these increased costs will soon be reflected in consumer prices.

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