Canadian Prime Minister Mark Carney said Thursday he will institute 25% tariffs on U.S. auto imports in retaliation to tariffs imposed by President Donald Trump that took effect earlier in the day.
"As I told President Trump during our call last week, Canada will respond to the U.S. auto tariffs," Carney said during a news conference from Parliament Hill in Ottawa, Ontario. "And today, I'm announcing that the government of Canada will be responding by matching the U.S. approach."
Trump on Wednesday announced "Liberation Day" tariffs that imposed a baseline 10% tariff on all imported goods starting Saturday, with higher individualized reciprocal tariffs on countries with which the U.S. has the largest trade deficits.
Canada and Mexico were exempted because both countries are facing 25% tariffs imposed last month to pressure them to do more to prevent fentanyl trafficking and illegal immigration. Goods compliant with the U.S.-Mexico-Canada Trade Agreement will see no tariffs, and noncompliant goods will see a 25% tariff, plus noncompliant energy and potash goods will see a 10% tariff, according to a White House fact sheet.
"While it's progress that further tariffs were not imposed on Canada yesterday, the president's actions will reverberate here in Canada and across the world," said Carney, who leads Canada's Liberal Party. He added the tariffs imposed on his nation are "unjustified, unwarranted and in our judgment misguided."
But 25% tariffs on all foreign-made cars and trucks began Thursday, and levies on foreign-made automotive parts are set to begin May 3, in line with 25% tariffs on aluminum and steel imports that had been in place since last month.
Carney said his new tariffs would not be imposed on auto parts.
"Our tariffs, though, unlike the U.S. tariffs, will not affect auto parts because we know the benefits of our integrated production system, and they will also not affect vehicle content from Mexico, who is respecting the [USMCA trade] agreement," he said.
Canada's initial retaliatory tariffs on the U.S. remain in place, on items such as orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper products.
The Canadian government also will develop a framework for auto producers in Canada to get federal relief from U.S. tariffs as long as they maintain production and investment in the country, The Globe and Mail in Toronto reported. Carney said every dollar raised from Canadian levies will go toward helping workers and companies affected by the U.S. tariffs.
Carney, who was sworn in as prime minister last month after Justin Trudeau resigned, paused his election campaign Wednesday – Canada's federal elections are set for April 28 – to consult with cabinet officials and provincial and territorial leaders on how to counter the U.S. tariffs, the Globe and Mail reported. He was expected to resume his campaign later in the day.
Conservative Party leader Pierre Poilievre said during a campaign event in Kingston, Ontario, on Thursday that he no longer considers the U.S. a dependable trading partner – "their president has chosen to betray America's best friend and closest ally," according to the Globe and Mail.
He added the Canadian government must get tougher with Trump and commit to revoking any new trade or defense arrangements with the U.S. if the Trump administration keeps violating trade agreements.
Newsmax reached out to the White House for comment.
Michael Katz ✉
Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.
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