Ontario [Canada]: In response to US President Donald Trump’s tariffs on Canadian automobiles, Canada Prime Minister Mark Carney has announced a 25% tariff on all US vehicle imports that fail to comply with the Canada-United States-Mexico Agreement (CUSMA).
Carney: “Canada Will Respond with Purpose and Force”
PM Carney stated that all revenue generated from these tariffs would be directed toward supporting Canadian auto workers and the domestic auto industry.
“In response to President Trump’s tariffs on our auto sector, Canada will impose a 25% tariff on all US vehicle imports that do not comply with our free trade agreement,” Carney posted on X.
For US vehicles that do comply with CUSMA, Canada will still impose a 25% tariff on any components that originate from outside Canada or Mexico.
Canada’s Tariffs Target Vehicles, Not Parts
Carney emphasized that Canada’s response differs from Trump’s tariffs, as it will not impact auto parts, ensuring the stability of the North American supply chain.
“Our tariffs, unlike President Trump’s, will not affect auto parts because we know the benefits of our supply chain. Canada will also develop a support framework for auto producers that incentivizes production and investment in Canada,” he wrote.
Escalating Trade War: Trump’s Tariff Blitz
The US auto tariffs follow Trump’s March 4 announcement of 25% tariffs on Canadian goods and 10% on energy and potash exports. Additionally, on March 12, the US imposed 25% tariffs on Canadian steel and aluminum products.
On April 3, a 25% tariff on Canadian automobiles came into effect, threatening over 500,000 Canadian jobs in the auto industry. The US has also hinted at tariffs on specific auto parts by May 3.
Amid mounting global criticism, Trump declared a national economic emergency and imposed sweeping double-digit tariffs on over 180 countries and regions.
Global Market Impact: Stocks Tumble
With US stock markets plunging following Trump’s tariff announcement, global investors are bracing for turbulence. Asian markets are expected to react sharply when trading resumes.
Canada’s Stand: Protecting Workers and Industry
Carney reaffirmed Canada’s commitment to defending its economy, workers, and businesses, stating:
“The global economy is fundamentally different today than yesterday. We must respond with purpose and force to protect Canadian workers and businesses against the unjust tariffs imposed by the United States. We will never cease to defend the interests of Canadians and continue our pursuit to build the strongest economy in the G7.”
With both nations locked in a trade battle, the next move will be closely watched, particularly in the lead-up to the US presidential elections.