Trump Canada tariff battle: Canada imposing 25% tariff on some U.S. auto imports

Prime Minister Mark Carney introduced “25% tariffs on all automobiles imported from the USA that aren’t compliant with CUSMA,” utilizing the Canadian acronym for an current North American free commerce settlement.
| Photograph Credit score: AP

Canada stated it could impose a 25% tariff on tens of 1000’s of automobiles imported from the USA, retaliating in opposition to U.S. President Donald Trump’s levies that got here into impact on Thursday (April 3, 2025).

Prime Minister Mark Carney introduced “25% tariffs on all automobiles imported from the USA that aren’t compliant with CUSMA,” utilizing the Canadian acronym for an current North American free commerce settlement.

The tariffs on Can$8 billion (US$5.7 billion) value of U.S. automobiles are to return into power within the coming days, his workplace instructed AFP.

The Canadian tariffs will influence vehicles and lightweight vans which can be made with lower than 75% North American elements — roughly 10% of all automobiles shipped from the USA to Canada, or about 67,000 automobiles yearly.

Canada was largely spared from the sweeping world tariffs Trump introduced on Wednesday (April 3, 2025), as Washington granted an exemption to items compliant with the U.S.-Canada-Mexico free commerce settlement, which covers most merchandise.

However Canada, which is one among America’s largest buying and selling companions, remains to be dealing with tariffs on metal, aluminum and different merchandise, along with the levies on vehicles.

Mr. Carney stated Trump’s commerce battle “will rupture the worldwide financial system.”

“The system of worldwide commerce anchored in the USA that Canada has relied on because the finish of the Second World Warfare… is over,” Mr. Carney stated.

“The 80-year interval when the USA embraced the mantle of worldwide financial management, cast alliances rooted in belief and mutual respect, championed the free and open trade of products and companies is over,” he added, calling the event “a tragedy.”

Ottawa has beforehand imposed retaliatory tariffs on Can$30 billion value of U.S. client items and Can$30 billion of U.S. metal and aluminum imports into Canada.

Mr. Carney and Mr. Trump spoke by telephone final week. They agreed Washington and Ottawa ought to negotiate the way forward for bilateral commerce after Canada’s April 28 election.