Canada Imposes Retaliatory Tariffs on U.S. Cars: 25% Tariffs Now in Effect
Starting April 9, Canada is launching strict trade measures against the United States, imposing 25% tariffs on a range of vehicles in response to U.S. tariffs on Canadian goods.
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The Government of Canada has officially enacted retaliatory tariffs on U.S. automobiles, as announced on the official website of the Canadian government.
Starting April 9, 2025, at 12:01 a.m. Eastern Time, a 25% tariff will apply to fully assembled U.S. vehicles that do not meet CUSMA agreement conditions, as well as components of such vehicles not manufactured in Canada or Mexico.
This decision comes in response to a series of U.S. tariffs introduced since March. On April 3, the U.S. imposed 25% tariffs on Canadian vehicles, affecting over 500,000 auto industry workers in Canada.
Similar measures were previously applied to steel, aluminum, and other export goods.
Finance Minister François-Philippe Champagne stated that Canada is defending its jobs and industrial interests, as reported by the Department of Finance Canada.
A compensation mechanism has also been announced for automakers investing in Canada.
An exception has been made only for residents of Campobello Island in the province of New Brunswick, which is connected to the mainland year-round only through U.S. territory. They are exempted from tariffs on household goods.
Canada's countermeasures will remain in effect until the United States lifts its trade restrictions.
Earlier, it was reported that starting April 10, China will introduce an additional 34% tariff on all U.S. imports in response to new American tariffs, calling them a violation of international trade norms.
It also became known that IMF Chief Kristalina Georgieva warned that the new tariffs introduced by the U.S. pose risks to the global economy, urging Washington and its partners to urgently reduce trade tensions.