Ottawa is fighting back against auto tariffs launched this week by the White House. Even though Canada escaped the reciprocal global tariffs announced by President Donald Trump, the original fentanyl tariffs and those on steel and aluminum remain in place, and auto tariffs are now in force. Prime Minister Mark Carney is warning that Trump’s trade actions will rupture the global economy.
Carney says tariffs will also sink economic growth and result in devastating consequences in Canada and around the world. He describes the Trump tariffs as unjustified, unwarranted, and misguided, adding that Canada must hit back with carefully calibrated and targeted countermeasures.
“And today, I’m announcing that the government of Canada will be responding by matching the US approach, with 25 percent tariffs on all vehicles imported from the United States that are not compliant with CUSMA, our North American Free Trade agreement. And on the non-Canadian content of CUSMA vehicles from the United States as well,” Carney said.
Carney adds that Ottawa’s tariffs, unlike those from the US, will not affect auto parts because of the benefits of the integrated production system. And they will not affect vehicle content from Mexico, which respects the CUSMA agreement. Carney goes on to say that Ottawa is developing a relief plan for auto makers in Canada as long as they maintain their production and investment in Canada.
Ontario Premier Doug Ford also responded to the tariffs announced by the White House on Wednesday.
“We got the best of a bad deal, which, in my opinion, is totally unacceptable. The only thing that’s acceptable is zero tariffs,” Ford said.
Meanwhile, during a meeting earlier Thursday between the provincial premiers and Carney, all supported the measured response from Ottawa in defense of the auto sector.
