Canada has announced the imposition of a 25% tariff on certain U.S. vehicles, a response to the tariffs introduced by President Donald Trump, which took effect on Thursday.
Prime Minister Mark Carney stated that the tariff would apply to all vehicles from the U.S. that do not meet the standards set by the Canada-United States-Mexico Agreement (CUSMA), though it remains unclear which specific U.S. vehicle imports will be affected.
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While Canada was largely exempt from the global tariffs introduced by Trump on Wednesday—due to an exemption for goods compliant with the U.S.-Canada-Mexico free trade agreement—Canada still faces tariffs on steel, aluminum, and other products, in addition to the new automotive levies.
Carney strongly criticized Trump’s trade policies, claiming that they could severely disrupt the global economy. He stated that the era of U.S. leadership in global trade, which Canada had relied on since World War II, was over, calling it a “tragedy.”
In a phone call the previous week, Carney and Trump agreed that future bilateral trade negotiations would take place after Canada’s April 28 election.
