Yesterday, the United States administration announced a new series of tariffs that will significantly impact the international trading system. While key aspects of the Canada-U.S. trade relationship remain intact, new tariffs on automobiles have now taken effect. These additional measures come on top of previously implemented tariffs, including those on steel and aluminum, which continue to remain in force.
The Prime Minister of Canada, Mark Carney, today announced new countermeasures to protect Canadian workers and businesses and defend Canada’s economy. These countermeasures include:
- Twenty-five per cent tariffs on non-CUSMA compliant fully assembled vehicles imported into Canada from the United States.
- Twenty-five per cent tariffs on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States.
Quick Facts
- Canada and the United States have the world’s most comprehensive and dynamic trading relationship, which supports millions of jobs in both countries. US$2.5 billion worth of goods and services cross the border every day.
- On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods and 10 per cent on energy and potash exports from Canada to the U.S. came into effect. On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.
- On April 3, U.S. tariffs of 25 per cent on Canadian automobiles came into effect, targeting the auto industry and the more than 500,000 Canadians this industry supports across the country.
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- The U.S. also intends to apply 25 per cent tariffs on certain automobile parts before May 3. Under the U.S. tariffs certain exclusions linked to U.S. content may be available, specifically, the application of the 25 per cent tariff only to the value of the non-U.S. content in automobiles and auto parts that qualify for preferential tariff treatment under CUSMA.
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- Canada has responded to the U.S. imposition of tariffs on Canadian goods by introducing a suite of countermeasures designed to compel the U.S. to remove the tariffs as soon as possible. These countermeasures include:
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- Imposing tariffs of 25 per cent on a valued $30 billion in goods imported from the U.S., effective March 4, 2025.
- Launching a public comment period on potential counter tariffs on additional imports from the U.S.
- Imposing, as of March 13, 2025, 25 per cent reciprocal tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion to match U.S. tariffs on steel and aluminum dollar-for-dollar.
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Associated Links
- Canada-United States relations
- Canada’s response to U.S. tariffs on Canadian goods
- The Canada-United States-Mexico Agreement (CUSMA)
- Prime Minister Carney meets with premiers to discuss Canada’s response to U.S. tariffs
- Prime Minister Carney speaks with President of the United States Donald J. Trump