Canada hits back at Trump with new tariff on US auto imports

Ottawa, Canada - said it would impose a 25% tariff on tens of thousands of vehicles imported from the US, retaliating against US President 's levies that came into effect on Thursday.

Prime Minister Mark Carney said Canada would impose a 25% tariff on tens of thousands of vehicles imported from the US. © Dave Chan / AFP

Prime Minister Mark Carney announced "25% tariffs on all vehicles imported from the United States that are not compliant with CUSMA," using the Canadian acronym for an existing North American free trade agreement.

The tariffs on $5.7 billion worth of US vehicles are to come into force in the coming days, his office told AFP.

The Canadian tariffs will impact cars and light trucks that are made with less than 75% North American parts – roughly 10% of all vehicles shipped from the US to Canada, or about 67,000 vehicles annually.

Canada was largely spared from the Trump announced Wednesday, as Washington granted an exemption to goods compliant with the US-Canada-Mexico free trade agreement, which covers most products.

But Canada, which is one of America's largest trading partners, is still facing tariffs on steel, aluminum and other products, in addition to the .

Carney said Trump's trade war "will rupture the global economy."

In response to President Trump’s tariffs on our auto sector, Canada will impose a 25% tariff on all U.S. vehicle imports that do not comply with our free trade agreement.

All revenues from these tariffs will be used to support our Canadian auto workers and their industry.

— Mark Carney (@MarkJCarney) April 3, 2025

Carney calls Trump's global tariffs "a tragedy" Canada was largely spared from the sweeping global tariffs Trump announced Wednesday, as Washington granted an exemption to goods compliant with the US-Canada-Mexico free trade agreement, which covers most products. © Brendan Smialowski / AFP

"The system of global trade anchored in the United States that Canada has relied on since the end of the Second World War... ," Carney said.

"The 80-year period when the United States embraced the mantle of global economic leadership, forged alliances rooted in trust and mutual respect, championed the free and open exchange of goods and services is over," he added, calling the development "a tragedy."

Ottawa has previously imposed retaliatory tariffs on about $21 billion worth of US consumer goods and about $21 billion of US steel and aluminum imports into Canada.

Carney and Trump last week.

Canada is ready to lead. pic.twitter.com/aeRNmdbvdx

— Mark Carney (@MarkJCarney) April 3, 2025

They agreed Washington and Ottawa should negotiate the future of bilateral trade after Canada's .