The Canadian Minister of Finance, François-Philippe Champagne, announced today that tariffs will be imposed on vehicles manufactured in the United States that are not covered by the USMCA free trade agreement. This decision was confirmed in a statement issued by Champagne.
In addition to the vehicles, components not produced in Canada or Mexico that are part of vehicles imported from the United States will also be subject to taxes.
“Canada continues to firmly respond to all unjustified and irrational tariffs imposed by the United States on Canadian products. The government remains firmly committed to ensuring that the U.S. removes these tariffs as quickly as possible and will protect Canadian workers, businesses, economy, and industry,” Champagne stated.
On April 3, U.S. tariffs of 25% on cars produced in Canada and not included in the USMCA came into effect, following an announcement from President Donald Trump.
The U.S. government also declared that, as of May 3, some Canadian auto parts would face a 25% tariff.
Prime Minister Mark Carney promptly reacted to Trump’s announcement, expressing the intention to impose a 25% tariff on U.S. vehicles, though his government had not specified the implementation date until today.
Since March 4, the Trump administration has also enforced a 25% tariff on Canadian goods that fall outside USMCA regulations and a 10% tariff on Canadian imports of energy and potash.
On March 12, the U.S. enacted tariffs of 25% on Canadian steel and aluminum.
In retaliation, Canada imposed 25% tariffs on U.S. products imported into the country, along with reciprocal tariffs on U.S. steel and aluminum products.
Canada represents the largest market for vehicles produced in the United States, having imported vehicles worth 35.6 billion Canadian dollars (22.8 billion euros) from its neighboring country in 2024.
