Canada reaches US automatic imports with 25% tariff

Canadian Prime Minister Mark Carney revealed the country’s response to President Trump’s “a series of unnecessary and unreasonable tariffs.” These have caused global chaos and exacerbated the already-made trade war.

In response to the new U.S. tariffs on imported vehicles, Canada impose a 25% tariff on non-Cusma (United Nations of Canada-Mexico Agreement) in line with fully assembled vehicles imported from the U.S. to Canada to Canada. Most importantly, the country’s tariffs on “non-Canadian and non-Mexican cusmas compliant with the non-Canadian and non-Mexican content of fully assembled vehicles” imported from the United States to Canada.

More: Trump imposes a 25% tariff on all non-US-made cars and parts

While this is a lot of legal people, vehicles reportedly require at least 75% of North American content to be tax-free. That’s a tough task, but many models should hit thresholds.

“Every dollar raised from these tariffs will directly support our auto workers,” the Canadian government said. They will need it because Stellantis recently suspended production in the Windsor Assembly in response to Trump’s new tariffs.

Prime Minister Carney said in a statement: “Today’s global economy is completely different from yesterday. We must respond with purpose and force and take every step to protect Canadian workers and businesses from unfair U.S. tariffs on unfair tariffs, including cars. We will never stop for the benefit of Canadians to protect the interests of our workers and businesses.

With Canada and the United States having “the most comprehensive and dynamic trade relationship in the world”, the trade war is expected to be cruel to both sides. The Canadian government noted that this supports millions of jobs in each country, crossing the border every day, worth $250 million (3.50 CAD) of goods and services.