Canada has imposed countermeasures against the US’ “unjustified tariffs” on the country’s auto industry, effective from 9 April 2025.
Although US President Trump paused (90 days) most planned new reciprocal import tariffs yesterday (9 April; they are all replaced with a 10% duty instead), sectoral tariffs such as the blanket 25% on vehicle imports, remain in place.
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The countermeasures, which were initially announced by the Canadian Prime Minister Mark Carney last week, are a response to the 25% tariffs imposed by the Donald Trump-led US government on Canadian automobiles on 3 April 2025.
The new tariffs include a 25% duty on both non-Canada-US-Mexico Agreement (CUSMA) compliant fully assembled vehicles and non-Canadian and non-Mexican content of CUSMA compliant vehicles imported from the US.
The US government is also planning to levy 25% tariffs on certain auto parts from 3 May 2025, with potential exclusions for US content.
Canada Minister of Finance François-Philippe Champagne said: “Canada continues to respond forcefully to all unwarranted and unreasonable tariffs imposed by the US on Canadian products.
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By GlobalData“The government is firmly committed to getting these US tariffs removed as soon as possible, and will protect Canada’s workers, businesses, economy and industry.”
Canada’s suite of countermeasures aims to pressure the US into lifting these tariffs as soon as possible. Vehicle imports from the US amounted to $35.6bn in 2024.
In addition to tariffs, a remission framework to encourage auto production and investment in Canada will be implemented. This framework is designed to help maintain Canadian jobs.
Canadian Prime Minister Carney emphasised that all revenue from the new tariffs would directly support Canadian auto workers.
The government’s decisive action aims to protect Canadian interests and ensure the vitality of the nation’s automotive sector amidst international trade tensions.
Recently, it was reported that Nissan Motor was considering transferring some of its Japanese production to the US as a result of the US government’s 25% import tariff on all vehicles imported into the country.
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