Canada Hits Back At Trump With New Tariffs On American-Made Cars

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In a tit for tat response, Canada is targeting fully assembled vehicles from America

6 hours ago

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• Canada has hit back with a 25% tariff on vehicles imported from the United States.
• The new tariffs will apply to non-CUSMA compliant fully assembled vehicles and content.
• The government will use money raised from the tariffs to support autoworkers.

Canadian Prime Minister Mark Carney has revealed the country’s response to a “series of unwarranted and unjustified tariffs” applied by President Trump. These have caused chaos across the globe and intensified an already brewing trade war.

In response to America’s new tariff on imported vehicles, Canada is hitting back with a 25% tariff on “non-CUSMA (Canada-United States-Mexico Agreement) compliant fully assembled vehicles imported into Canada from the United States.” On top of that, the country is applying a 25% tariff on “non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles” imported into Canada from America.

More: Trump Imposes Sweeping 25% Tariff On All Non-US Made Cars And Parts

While that’s a lot of legalese, vehicles reportedly need at least 75% North American content to be exempt from tariffs. That’s a tall order, but a number of models should meet the threshold.

The Canadian government said “every single dollar raised from these tariffs will go directly to support our auto workers.” They’ll need it as Stellantis recently paused production at Windsor Assembly in response to Trump’s new tariffs.

In a statement, Prime Minister Carney said “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.”

The trade war promises to be brutal for both sides as Canada and the United States have the “world’s most comprehensive and dynamic trading relationship.” The Canadian government noted this supports millions of jobs in each country as $2.5 ($3.5 CAD) billion worth of goods and services cross the border every day.

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