The 25 percent counter-tariffs that Canada announced last week on certain U.S.-made vehicles will officially take effect on April 9, as confirmed by the federal finance ministry.
“These countermeasures will remain in place until the U.S. eliminates its tariffs against the Canadian auto sector,” the ministry stated in a release.
Vehicles from Mexico not affected
Under Canada’s auto-tariff plan, vehicles imported from Mexico will not be impacted. Moreover, Ottawa has no intention of imposing duties on auto parts, recognizing their crucial role in the integrated supply-chain network.
Canada stands as the largest export market for cars from the U.S., with officials estimating that around 8 percent of the 750,000 vehicles shipped from the U.S. to Canada do not comply with the existing trade treaty. The Congressional Research Service has indicated that some auto manufacturers choose to pay duties on cars produced and shipped within North America, as they find this approach to be more cost-effective than meeting the regional content requirements.
Read more: Canada to impose $20.7 billion retaliatory tariffs on U.S.
Strong response to U.S. tariffs
“Canada continues to respond forcefully to all unwarranted and unreasonable tariffs imposed by the U.S. on Canadian products,” asserted Finance Minister Francois-Philippe Champagne.
Trump’s auto tariffs have already led to significant repercussions in Canada, including Stellantis temporarily halting production at its auto assembly factory located in Windsor, Ontario, for two weeks. Additionally, Trump has threatened a 25 percent tariff on foreign-made auto parts—a move that leaders in the auto industry warn could potentially halt automobile production altogether.
Canada emerged from Trump’s recent trade-policy announcement with no new tariffs beyond what the White House had previously disclosed. This includes the 25 percent tariff on vehicles, a 25 percent duty on steel and aluminum, and a 25 percent charge on Canadian imports that are not USMCA compliant.
