Canada is imposing counter-tariffs that will match U.S. Prime Minister Mark Carney stated on Thursday that President Donald Trump’s tariffs on automobiles are intended to encourage automakers to stay put while also promising additional assistance for auto workers. Carney said Canada will respond by matching the U.S. approach, with 25 per cent tariffs on all vehicles imported from the United States that are not compliant with the CUSMA free trade agreement, and on the non-Canadian content of CUSMA-compliant vehicles from the United States.
We must respond with force and intention. We are a free, sovereign, and ambitious country. He stated, “We are masters in our own home.” Carney, who spoke in his role as current prime minister in a caretaker government but is campaigning as Liberal leader, said Canada was preparing a framework for automakers to get relief from Canada’s counter-tariffs, “as long as they maintain their production and investment in our country.” He predicted that Canada’s counter-tariffs would generate approximately $8 billion in revenue. He said that money would go towards providing relief to auto workers who lose their jobs and companies that suffer losses, on top of the promised $2-billion strategic relief fund he has promised if elected.
According to Carney, Trump’s announcement has disrupted the shared auto industry between Canada and the United States that was established over decades following the signing of the Auto Pact in 1965. “In the year I was born, Canada and the United States signed the Auto Pact, an agreement that ended auto tariffs between our nations and began a 60-year period of close cooperation, partnership, job growth and prosperity. And that era has now ended unless the United States and Canada can agree on a new comprehensive approach.”
Carney said whoever is Canada’s prime minister after the April 28 federal election will meet with Trump to hammer out the details of Canada’s new economic and security relationship with the United States.“ As President Trump and I agreed last week, he and the prime minister of Canada will sit down immediately following the election to find areas of common ground and agreement in a new economic and security partnership,” he said.
“Our old relationship of steadily deepening integration with the United States of America is over,” Carney stated. However, he added, “The U.S. is still absolutely our ally.” According to Pierre Poilievre, the leader of the Conservative Party, Carney’s first phone call with Trump last week did not result in any progress in the trade war. “Millions of Canadians woke up to the fear of losing their savings or their jobs. During a press conference held on Thursday in Kingston, Ontario, Poilievre stated that tariffs must end. To counter the impact of the auto tariffs, Poilievre stated that the Conservatives would eliminate the federal sales tax on automobiles manufactured in Canada while making it a top priority to keep the industry moving and workers employed. Additionally, he urged the provinces to follow suit and eliminate their portion of the provincial sales tax on automobiles manufactured in Canada. Poilievre stated, “It’s clear that Canadians must stand together, and I’m here to reassure Canadians that united we will get through this together.” NDP Leader Jagmeet Singh suggested that Ottawa adopt a “Build Canadian, Buy Canadian” strategy in order to successfully navigate this trade war. He went on to say that the NDP wanted to introduce “victory bonds,” like the ones Canada had during the Second World War. “A victory bond would be a guaranteed investment where you would purchase a bond, a five-year or a 10-year, and if you hold it to maturity, you would get all the revenue tax-free,” he said.
According to Ontario Premier Doug Ford, whose province is likely to suffer the most from Trump’s auto tariffs, LCBO stores will not sell alcohol from the United States. A new round of U.S. tariffs hitting Canada’s auto sector is now in effect as President Donald Trump escalates his global trade war that has rattled markets and threatened industries across the world.
Automaker Stellantis also made the announcement that production at its Windsor, Ontario, facility would be stopped for two weeks. Please be advised that production will not take place between April 7, 2025, and April 14, 2025. Production employees must not report to work unless directed by their supervisor,” said a notice from Stellantis to employees, posted to social media by Unifor Local 444. Stellantis said the primary driver behind the decision is the announcement of tariffs from U.S. President Donald Trump, the union said in a Facebook post.
All vehicles, trucks, and auto parts imported into the United States on Thursday will be subject to a 25% tariff. The U.S. has so far imposed 25 per cent tariffs on all Canadian goods, as well as an additional 25 per cent on steel and aluminum imports and a 10 per cent levy on Canadian energy imports.
According to the executive order signed by Trump last week, the auto tariffs will not apply on U.S.-made parts in foreign-made vehicles.
The White House says Trump is taking action to protect the American automobile industry, which it claimed is “vital to national security and has been undermined by excessive imports.”
The auto tariffs come a day after Trump unveiled global “reciprocal” tariffs on dozens of countries and territories, announcing a baseline 10 per cent duty. Canada is not included in that list.
Canada will match Trump’s 25% auto tariffs, Carney says
