Canada hits US car sector with 25 per cent tariffs, mirroring Trump’s move

Canada will put 25 per cent retaliatory tariffs on US-made vehicles in response to the Trump administration’s import taxes on foreign cars, Prime Minister Mark Carney said on Thursday.

The Canadian tariffs will apply only to vehicles that are not compliant with the US-Mexico-Canada Agreement, and on the “non-Canadian content” in cars and trucks that are shipped under the rules of that trade deal. In other words, the Canadian taxes mirror the structure of the US vehicle tariffs.

Carney announced “25 per cent tariffs on all vehicles imported from the United States that are not compliant with CUSMA”, using the Canadian acronym for an existing North America free trade agreement.

Carney did not immediately offer detail on how many vehicles could be impacted by Canada’s retaliation, but called his response “focused and calibrated”.