Canada Plans Retaliation Against Trump by Imposing Tariffs on US Autos

Prime Minister Mark Carney announced that countermeasures aimed at achieving “maximum impact” will target vehicles that fail to meet USMCA standards.

Canada Plans Retaliation Against Trump by Imposing Tariffs on US Autos
OTTAWA — Prime Minister Mark Carney announced that Canada will implement “carefully calibrated and targeted counter tariffs” in response to President Donald Trump’s “Liberation Day” tariffs.

In a decisive move, Carney revealed that Canada will impose a 25 percent tariff on all vehicles imported from the United States that do not comply with the United States-Mexico-Canada Agreement, as well as on the non-Canadian content of USMCA-compliant vehicles from the U.S.

Unlike Trump’s tariffs, however, Carney noted that Canada’s countermeasures will not impact auto parts, emphasizing the importance of their integrated production system. He also confirmed that all previously announced Canadian countermeasures in reaction to Trump’s earlier threats will remain in effect.

Carney criticized Trump’s global reciprocal tariffs, stating that they have marked the end of 80 years of American global economic leadership that began after World War II.

“This is a tragedy. It is also the new reality. We must respond with both purpose and force. We are a free, sovereign and ambitious country,” Carney expressed to reporters on Parliament Hill following discussions with the 13 provincial and territorial premiers.

Looking forward, Carney indicated that Canada aims to fill the void left by U.S. leadership by forming a new global alliance with like-minded partners in Europe and Mexico.

He mentioned his recent discussions, specifically a call with German Chancellor Olaf Scholz and another with Mexican President Claudia Sheinbaum, and recalled that his initial trips as prime minister led him to Paris and London, alongside engagements like the deal with Australia for over-the-horizon radar in the Arctic.

“Canada is ready to take a leadership role in building a coalition of like-minded countries who share our values,” Carney asserted.

While emphasizing Canada’s alliance with the U.S., he remarked, “It's our ally in security and defense partnerships.” However, he pointed out that, “Part of what our relationship has been based on, though, has been a degree of integration between our economies, our trade becoming closer and closer together. That is over.”

Mathilde Moreau for TROIB News

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