Canada to Impose 25% Tariffs on US Vehicles in Response to Trump’s Government

Canada will impose retaliatory 25% tariffs on American-made vehicles as a countermeasure against the government of Donald Trump, Prime Minister Mark Karnay announced today (April 3, 2025). While Canada was spared from the so-called ‘mutual tariffs’ announced by President Donald Trump yesterday, new U.S. tariffs of 25% on foreign-made cars took effect this morning. For Canada, these tariffs apply to the non-American content of final vehicles. The Canadian tariffs will only apply to vehicles that do not comply with the US-Mexico-Canada Agreement and for the ‘non-Canadian content’ in cars and trucks shipped according to the rules of said trade agreement, Bloomberg reported. In other words, Canadian taxes mirror the structure of American car tariffs. Canada’s automotive sector, which is largely integrated with the U.S., is set to be hit hard by Trump’s tariffs. Stellantis, owner of Jeep and Chrysler brands, has already announced it will close its assembly plant in Windsor, Ontario, for two weeks as it assesses impacts, according to a note to employees. High U.S. tariffs remain on products that don’t comply with the US-Mexico-Canada Agreement, including all steel and aluminum products. Trump has also threatened to add new tariffs on pharmaceuticals, semiconductors, copper, and timber.