Canada strikes back: Slaps 25% tariffs on US auto imports amid Trump's tariff war

Canda retaliates to trump tariffs

Amid the ongoing tariff war, Canada has announced a 25 per cent tariff on all vehicles imported from the United States, in retaliation against similar measures imposed by US.

Prime Minister Mark Carney confirmed that 25 per cent tariffs will be levied on all vehicles imported from the United States that are not compliant with CUSMA, reported AFP.

Carney described Canada's retaliation as "focused and calibrated," aiming to minimise disruptions. The Canadian leader, however, did not immediately offer details on how many vehicles could be impacted by Ottawa's tariffs.

Confirming that the new taxes would apply after midnight on Wednesday, Canadian Finance Minister Francois-Philippe Champagne said his country was responding to "unwarranted and unreasonable" tariffs.

“We are taking action to protect our workers, businesses, and economy,” Champagne posted on X, confirming the launch of Canada’s retaliatory measures.

As of midnight, our countermeasures will come into effect : 25% tariffs on certain automobiles imported from the U.S.Canada will continue to respond with purpose and force to President Trumps unjustified tariffs. Well protect our workers, our businesses, and our economy. pic.twitter.com/YqjFzr1gL0
Franois-Philippe Champagne (FPC) (@FP_Champagne) April 8, 2025

The imposed vehicle tariff would be paid by Canadians who buy some automobiles or their parts from the US.

The Canadian car tariffs come after Trump's import taxes of 25% on cars entering the US came into effect. Taxes on car parts are set to start next month.

Canada was not directly hit by the new swathe of American tariffs - which also came into force at midnight - but Ottawa was already in a row with Washington over Trump's pre-existing policies, which tax a range of items brought across the border.

As Canada has retaliated against US tariffs, China has also announced that it will impose an 84% tariff on US imports.