Canada will respond to the U.S.’s “unjustified and unwarranted” tariffs by imposing a 25% tax on American vehicles, Mark Carney announced.
While Donald Trump’s newly introduced tariffs spared Canada and Mexico from additional levies, existing 25% duties on Canadian steel, aluminum, and vehicles remain in place.
Prime Minister Carney stated that the retaliatory tariffs would apply to non-compliant vehicles under the continental free trade agreement but exclude auto parts and Mexico-sourced content. Amid global economic uncertainty, Carney emphasized Canada’s commitment to “free and equitable” trade and pledged to use tariff revenue to support affected workers and industries. With Canada in the midst of a federal election, Carney’s Liberals are seeing a surge in support, while Conservative leader Pierre Poilievre has vowed to renegotiate trade agreements and remove federal automotive taxes. The tariffs are expected to hit Ontario’s manufacturing sector hardest, with the province’s premier, Doug Ford, calling for a strong stance against U.S. trade policies.
