Canada has hit back with a 25% tariff on vehicles imported from the United States. The new tariffs will apply to non-CUSMA compliant fully assembled vehicles and content. The government will use money raised from the tariffs to support autoworkers.

On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods and 10 per cent on energy and potash exports from Canada to the U.S. came into effect. On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.

Canadian Prime Minister Mark Carney announced on Thursday his country will impose 25-percent tariffs on U.S. auto imports that do not comply with the U.S.-Mexico-Canada Agreement (USMCA) on free