News Brief
Canada Retaliates With 25 Per Cent Tariff On US Vehicles Amid Escalating Trade Tensions
Canadian Prime Minister Mark Carney
Canadian Prime Minister Mark Carney on Thursday (3 April) announced retaliatory tariffs in response to US President Donald Trump’s sweeping trade measures targeting Canadian goods, ANI reported.
Taking to X, Carney declared, "In response to President Trump's tariffs on our auto sector, Canada will impose a 25 per cent tariff on all US vehicle imports that do not comply with our free trade agreement."
These tariffs will apply specifically to vehicles not compliant with the Canada-United States-Mexico Agreement (CUSMA).
Additionally, even compliant vehicles will face a 25 per cent tariff on content not originating from Canada or Mexico.
"All revenues from these tariffs will be used to support our Canadian auto workers and their industry," Carney added.
The Canadian Prime Minister stressed the strategic approach of the response, pointing out key differences from US measures, "Our tariffs, unlike President Trump's, will not affect auto parts because we know the benefits of our supply chain."
Labelling the US move “unjust,” Carney stated, "The global economy is fundamentally different today than yesterday. We must respond with purpose and force... We will never cease to defend the interests of Canadians."
This comes after the US imposed 25 per cent tariffs on Canadian automobiles on 3 April, threatening an industry that supports over 500,000 Canadians.
Earlier tariffs of 25 per cent on Canadian goods and 10 per cent on energy and potash came into effect on 4 March, followed by steel and aluminium tariffs on 12 March.
President Trump has declared a national economic emergency, launching blanket tariffs of at least 10 per cent globally, and significantly higher for several nations, prompting global market anxiety.
