Canada hits U.S. vehicle imports with counter-tariffs effective Wednesday

Canada's new countermeasures announced last week in response to the tariffs imposed by the U.S. on the Canadian auto industry will come into force at 12:01 am EDT on Wednesday, Canadian Minister of Finance, François-Philippe Champagne, confirmed in a statement.

On April 3, Canada announced to impose 25 percent tariffs on non-Canada-U.S.-Mexico Agreement (CUSMA) compliant fully assembled vehicles imported into Canada from the U.S., and on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the U.S..

Vehicle imports to Canada from the U.S. totaled C$35.6 billion ($25 billion) in 2024, Canadian official data showed.

“Canada continues to respond forcefully to all unwarranted and unreasonable tariffs imposed by the U.S. on Canadian products. The government is firmly committed to getting these U.S. tariffs removed as soon as possible, and will protect Canada’s workers, businesses, economy and industry,” Champagne said in the statement.

The statement noted that a remission framework for auto producers that incentivizes production and investment in Canada, and helps maintain Canadian jobs, will also be implemented.