Canada Responds to Trump’s Tariffs with 25% Duty on Select U.S. Vehicle Imports

Canada Responds to Trump’s Tariffs with 25% Duty on Select U.S. Vehicle Imports

Prime Minister Mark Carney announced that Canada will implement a 25 percent tariff on certain automobiles imported from the United States, in response to new trade measures enacted by President Donald Trump. While Carney did not specify the number of vehicles that would be affected, he described the move as "measured and strategic."

The Canadian government stated that these new tariffs would apply to vehicles not meeting the standards outlined in CUSMA—the updated North American trade agreement. The precise share of U.S. vehicle imports subject to the tariff remains uncertain.

Although the U.S. had excluded some Canadian goods from the broad set of tariffs unveiled earlier, Canada still faces restrictions on products like steel, aluminum, and now certain automobiles. As the U.S.’s largest trading partner, Canada finds itself significantly impacted by the broader trade tensions.

Carney sharply criticized the direction of U.S. trade policy, warning that it could destabilize the global economy. He remarked that the post-World War II era of U.S.-led global trade, defined by cooperation and openness, has come to an end.

Carney and President Trump reportedly spoke over the phone the previous week, agreeing to revisit trade negotiations after Canada’s upcoming election on April 28.