Canada Hits Back with 25% Tariff on U.S. Vehicles Amid Escalating Trade War

In a bold response to President Donald Trump’s sweeping tariffs, Canada has announced a 25% levy on certain automobiles imported from the United States, further intensifying the growing trade tensions between the two North American neighbors.

Prime Minister Mark Carney declared the move on Thursday, specifying that the tariffs would apply to all U.S. vehicles not compliant with the Canada-United States-Mexico Agreement (CUSMA).

“Twenty-five percent tariffs on all vehicles imported from the United States that are not compliant with CUSMA,” Carney stated during a press briefing.

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While it remains unclear exactly what percentage of U.S. vehicle imports will be impacted, the announcement marks a significant shift in Canada’s trade stance. Until now, most Canadian goods had been exempt from Trump’s new global tariff framework, provided they met CUSMA standards.

However, Canada has continued to face levies on steel, aluminum, and various other products, and the inclusion of the automotive sector signals a broader fallout.

Prime Minister Carney delivered a scathing critique of Trump’s trade strategy, warning that the ongoing trade war could destabilize the global economy.

“Trump’s trade war will rupture the global economy,” Carney said.
“The post-World War II era of U.S.-led global economic leadership is over… The 80-year tradition of American alliances based on trust, free trade, and mutual respect has ended. It’s a tragedy,” he added.

Despite the escalating rhetoric, Carney and Trump recently held a phone call, agreeing to revisit bilateral trade negotiations following Canada’s federal election scheduled for April 28.

The situation continues to evolve, with analysts warning of further economic ripple effects if both nations fail to de-escalate the dispute in the coming weeks.