Following US President Donald Trump’s announcement of reciprocal tariffs, Canada Prime Minister Mark Carmey said that the country will impose a 25 per cent tariff on all US vehicle imports that do not comply with the free trade agreement. The Canadian PM further said that the revenue generated from these tariffs would be directed toward supporting the country’s auto workers and the industry.
Sharing a post on X on Thursday (local time), Carney said, “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.”
“For US vehicles that comply with The Canada-United States-Mexico Agreement (CUSMA), Canada will also impose a 25% tariff on the content which is not from either Canada or Mexico. The revenue from those tariffs will also go directly to supporting Canada’s auto workers and their industry,” the post added.
Carney further said that Canada’s tariffs would differ from those imposed by the US and stated that the tariffs, unlike President Trump’s, will not affect auto parts.
“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 incentivises production and investment in Canada,” Carney wrote on X.
Following the announcement of reciprocal tariffs, Carmey called the United States’ tariffs, particularly on automobiles, “unjust” and stated that the “global economy is fundamentally different today than yesterday.”
“The global economy is fundamentally different today than yesterday. 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. We will never cease to defend the interests of Canadians, safeguard our workers and businesses, and continue our pursuit to build the strongest economy in the G7,” Carney said.
Notably, on March 4, US tariffs of 25% on Canadian goods and 10% on energy and potash exports from Canada to the US came into effect. On March 12, the US imposed tariffs of 25% on Canadian steel and aluminum products.