Thu Apr 03 17:10:47 UTC 2025: ## Canada Slaps 25% Tariff on Some US Autos in Retaliation for Trump Levies

**OTTAWA** – Canada announced a 25 percent tariff on certain US auto imports in direct response to President Donald Trump’s newly implemented tariffs. Prime Minister Mark Carney stated the tariffs will apply to all US vehicles not compliant with CUSMA (the Canadian acronym for the USMCA trade agreement). The exact percentage of US vehicle imports affected remains unclear.

While Canada largely avoided the broader global tariffs announced by President Trump earlier this week, the country is still facing tariffs on steel, aluminum, and other products, in addition to the new auto tariffs. This action marks a significant escalation in trade tensions between the two North American neighbors.

Prime Minister Carney painted a grim picture of the global economic landscape, declaring that the era of US-led global trade, built on trust and mutual respect, is over. He characterized President Trump’s trade actions as a “tragedy” that will severely disrupt the global economy.

Despite a phone conversation last week between Carney and Trump, where they agreed to negotiate post-Canada’s April 28th election, this latest retaliatory measure signals a deepening rift in the US-Canada trade relationship. The impact of these tariffs on both economies remains to be seen.

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