Canada will introduce 25% tariffs on U.S. auto imports that do not meet the U.S.-Mexico-Canada Agreement (USMCA) standards, Prime Minister Mark Carney announced Thursday. The move is in response to President Trump‘s 25% auto tariffs, which went into effect the same day.
Carney clarified that the Canadian tariffs will exclude auto parts and vehicles from Mexico, stating, “Our tariffs, unlike the U.S. tariffs, will not affect auto parts… or vehicle content from Mexico, who is respecting the USMCA agreement.”
The countertariffs are projected to raise around $8 billion, with all proceeds directed to Canadian auto workers and impacted businesses.
This development follows Trump’s announcement of broader global tariffs, which did not include new measures on Canada or Mexico. Despite this, Carney expressed concern, warning the U.S. actions “will rupture the global economy.”
He also signaled a shift in trade strategy: “The system of global trade… is over. Our old relationship… with the United States is over.” Carney said Canada will pursue new partnerships with nations sharing its values.
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