Canada announces new countermeasures in response to tariffs from the United States of America

Yesterday, the United States administration announced a series of unwarranted and unjustified tariffs that will fundamentally change the international trading system. While some important elements of the Canada U.S. trade relationship have been preserved, new tariffs on automobiles have now entered into force. These are on top of the previously announced tariffs, including those on steel and aluminum, which remain in place.

The U.S. tariffs will do harm to American workers and businesses, but Canada will also be impacted, with every Canadian feeling the effects. The Government of Canada’s position has always been clear: we will fight these tariffs, protect our workers, and build the strongest economy in the G7.

The Prime Minister of Canada, Mark Carney, today announced new countermeasures to protect Canadian workers and businesses and defend Canada’s economy. These countermeasures include:

Twenty-five per cent tariffs on non-CUSMA compliant fully assembled vehicles imported into Canada from the United States.
Twenty-five per cent tariffs on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States.
Canada’s intention to develop a framework for auto producers that incentivizes production and investment in Canada.

Most importantly, every single dollar raised from these tariffs will go directly to support our auto workers.

These measures build on the Government of Canada’s previously announced supports to Canadian workers and business, including:

Temporarily waiving the one-week employment insurance (EI) waiting period.
Suspending rules around separation for a six-month period, so workers don’t have to exhaust severance pay before collecting EI.
Making it easier to access EI by increasing regional unemployment rate percentages.
Deferring corporate income tax payments and GST/HST remittances from April 2 to June 30, 2025, providing up to $40 billion in liquidity to businesses.
Deploying a new financing facility for businesses.
Providing more funding to Canada’s regional development agencies, so they can better support businesses.

In a crisis like this, it’s important to come together and act with strength, purpose, and force – and that’s exactly what we’re doing.

Quote

“The global economy is fundamentally different today than yesterday. We must respond with purpose and force and take every step to protect Canadian workers and businesses against the unjust tariffs imposed by the United States, including on automobiles. We will never cease to defend the interests of Canadians, safeguard our workers and businesses, and continue our pursuit to build the strongest economy in the G7.”

Quick Facts

Canada and the United States have the world’s most comprehensive and dynamic trading relationship, which supports millions of jobs in both countries. US$2.5 billion worth of goods and services cross the border every day.
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.
On April 3, U.S. tariffs of 25 per cent on Canadian automobiles came into effect, targeting the auto industry and the more than 500,000 Canadians this industry supports across the country.
- The U.S. also intends to apply 25 per cent tariffs on certain automobile parts before May 3. Under the U.S. tariffs certain exclusions linked to U.S. content may be available, specifically, the application of the 25 per cent tariff only to the value of the non-U.S. content in automobiles and auto parts that qualify for preferential tariff treatment under CUSMA.
Canada has responded to the U.S. imposition of tariffs on Canadian goods by introducing a suite of countermeasures designed to compel the U.S. to remove the tariffs as soon as possible. These countermeasures include:
- Imposing tariffs of 25 per cent on a valued $30 billion in goods imported from the U.S., effective March 4, 2025.
- Launching a public comment period on potential counter tariffs on additional imports from the U.S.
- Imposing, as of March 13, 2025, 25 per cent reciprocal tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion to match U.S. tariffs on steel and aluminum dollar-for-dollar.