Canada to impose counter-tariffs on U.S. auto imports

Canada is imposing new tariffs on American automobiles in response to what Prime Minister Mark Carney called “unwarranted and unjustified” U.S. trade measures.

The countermeasures include a 25 per cent tariff on fully assembled vehicles imported from the U.S. that do not comply with the Canada-United States-Mexico Agreement (CUSMA). A second 25 per cent tariff will apply to non-Canadian and non-Mexican content in CUSMA-compliant vehicles.

Carney said all revenue from the tariffs will go toward supporting Canadian auto workers.

“The global economy is fundamentally different today than yesterday,” he said. “We must respond with purpose and force and take every step to protect Canadian workers and businesses against the unjust tariffs imposed by the United States, including on automobiles.”

The U.S. tariffs, which were announced Wednesday, include levies on automobiles, steel and aluminum. The Canadian government has also announced measures to support workers and businesses, including changes to employment insurance rules and tax deferrals.