Thu Apr 03 19:25:51 UTC 2025: ## Canada Imposes 25% Tariff on Non-Compliant US Vehicles

**Ottawa, April 4, 2025** – Canada has retaliated against US President Donald Trump’s tariffs by imposing a 25% tariff on US vehicles not compliant with the Canada-United States-Mexico Agreement (CUSMA). The move, announced by Prime Minister Mark Carney, affects approximately 67,000 vehicles annually – roughly 10% of all US vehicle imports to Canada – valued at Can$8 billion (US$5.7 billion). These tariffs target cars and light trucks with less than 75% North American parts.

While Canada received an exemption from broader US tariffs on goods compliant with CUSMA, existing tariffs on steel, aluminum, and other products remain in place. Prime Minister Carney declared the era of US-led global trade, built on trust and mutual respect, to be over, calling the escalating trade war a “tragedy” that will disrupt the global economy. This action follows previous Canadian retaliatory tariffs totaling Can$60 billion on various US goods.

Despite the escalating tensions, Prime Minister Carney and President Trump spoke last week, agreeing to negotiate the future of bilateral trade after Canada’s April 28th election.

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