Canada Hits Back: PM Mark Carney Imposes 25% Tariffs on U.S. Auto Imports Amid Trade Spat
Canada Hits Back: PM Mark Carney Imposes 25% Tariffs on U.S. Auto Imports Amid Trade Spat
In response to Trump’s sweeping tariffs, Canada announces reciprocal levies on non-compliant U.S. vehicle imports, pledging full support to its domestic auto industry.
Ontario [Canada], April 4: Canadian Prime Minister Mark Carney has announced a strong retaliatory response to U.S. President Donald Trump’s newly imposed auto tariffs by declaring a 25% tariff on all U.S. vehicle imports that fail to comply with the Canada-United States-Mexico Agreement (CUSMA).
The move comes just hours after Trump’s sweeping reciprocal tariff policy came into effect, targeting a range of global goods — including automobiles — with 25% duties.
🇨🇦 Carney: “We Will Defend Canadian Workers”
In a statement shared on X (formerly Twitter), Carney said the collected revenue from these tariffs will go directly toward supporting Canadian auto workers and the automotive sector.
“In response to President Trump’s tariffs on our auto sector, Canada will impose a 25% tariff on all U.S. vehicle imports that do not comply with our free trade agreement,” Carney posted. “For vehicles that do comply with CUSMA, a 25% tariff will be applied to content that is not from Canada or Mexico.”
Crucially, auto parts are exempt from these new tariffs — a move designed to protect North America’s integrated supply chain.
“Our tariffs, unlike President Trump’s, will not affect auto parts because we know the benefits of our supply chain,” Carney stated, adding that a support framework will be developed to incentivize production and investment in Canada.
🚨 U.S. Tariffs Escalate Trade Tensions
Trump’s latest round of tariffs includes:
25% on Canadian automobiles (effective April 3)
10% on Canadian energy and potash exports (effective March 4)
25% on Canadian steel and aluminum (effective March 12)
Planned 25% tariffs on select U.S. auto parts (by May 3)
Additionally, a broader global tariff strategy is in play, with rates starting at 10% for all countries, and significantly higher levies on 60 nations — including India (26%), Vietnam (46%), China (34%), Japan (24%), and the European Union (20%).
📉 Economic Fallout Begins
The escalating trade measures triggered an immediate reaction in the markets. CNN reported that U.S. stocks fell sharply in after-hours trading, and global investors are now bracing for impact as Asian markets prepare to open.
Carney issued a strong rebuke of Trump’s approach, calling the U.S. actions “unjust.”
“The global economy is fundamentally different today than yesterday. We must respond with purpose and take every step to protect Canadian workers and businesses,” Carney said. “We will never cease to defend the interests of Canadians and continue our pursuit to build the strongest economy in the G7.”
