Canada Strikes Back with Retaliatory Tariffs on US Autos

Prime Minister Mark Carney announced that Canada will impose a 25% tariff on U.S. vehicle imports, matching U.S. President Trump's similar tariffs. Despite potential harm, Carney emphasizes minimizing Canadian impact while urging the American administration to reconsider. A CAD 2 billion fund is set to protect Canadian auto jobs.

Prime Minister Mark Carney announced Thursday that Canada will introduce a 25% tariff on vehicles imported from the United States, in direct response to similar measures enacted by U.S. President Donald Trump.

Trump's tariffs on auto imports took effect the same day, prompting Prime Minister Carney to outline Canada's strategic response, aimed to maximize impact in the U.S. while minimizing Canadian ramifications. Unlike Trump, Canada will refrain from placing tariffs on auto parts to preserve the benefits of the integrated auto sector between the two nations.

Prime Minister Carney noted ongoing impacts on Canadian automakers, citing scheduling disruptions at Stellantis's Windsor assembly plant. Autos represent Canada's second-largest export, crucial to over 625,000 jobs. Carney's CAD 2 billion strategic response fund intends to safeguard these jobs amid U.S. trade policies, which he criticized as unjustified and harmful to both Canadians and Americans.

(With inputs from agencies.)