Canada fires back: 25% tariffs on U.S cars

Canada has officially responded to US President Donald Trump’s latest tariff policies by imposing a 25% tariff on all US vehicle imports that do not comply with the free trade agreement between the two nations.

Prime Minister Mark Carney announced the move, stating that the revenue generated from these tariffs will be redirected to support Canadian auto workers and the industry.

Carney, sharing his stance on X (formerly Twitter), wrote: "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. All revenues from these tariffs will be used to support our Canadian auto workers and their industry."

Additionally, vehicles that do comply with the Canada-United States-Mexico Agreement (CUSMA) will also face tariffs on non-Canadian or non-Mexican content. The revenue from these tariffs will be used to boost investment in Canada’s auto sector.

While retaliating against Trump’s tariff strategy, Carney clarified that Canada’s tariffs will not affect auto parts, unlike the US approach. "Our tariffs, unlike President Trump's, will not affect auto parts because we know the benefits of our supply chain," he stated.

In a strong statement, Carney called the US-imposed tariffs “unjust” and warned that the global economy had changed overnight. He vowed that Canada would take “every step necessary” to protect Canadian workers and businesses.

This tariff war marks a significant escalation in US-Canada trade tensions, leaving the North American auto industry on edge. With billions at stake, the world now watches how Washington will respond.