Canada announced it would impose a 25 per cent tariff on certain automobiles imported from the United States, responding to President Donald Trump’s tariffs, which came into effect on Thursday.
Prime Minister Mark Carney declared, "25 percent tariffs on all vehicles imported from the United States that are not compliant with CUSMA," referring to the Canadian acronym for the North America free trade agreement.
It was unclear at the time what percentage of US vehicle imports would be affected by the new levy.
Canada had largely been exempt from the sweeping global tariffs Trump introduced on Wednesday, as Washington had granted an exemption to goods that complied with the US-Canada-Mexico free trade agreement, which covers most products.
Despite this, Canada, as America’s largest trading partner, continued to face tariffs on steel, aluminum, and other products, in addition to the new automotive measures.
Carney criticised Trump's trade policies, stating, “Trump’s trade war will rupture the global economy.”
"The system of global trade anchored in the United States that Canada has relied on since the end of the Second World War... is over," Carney said.
"The 80-year period when the United States embraced the mantle of global economic leadership, forged alliances rooted in trust and mutual respect, championed the free and open exchange of goods and services is over," he added, describing the situation as "a tragedy."
Carney and Trump had spoken by phone the previous week, agreeing that Washington and Ottawa would negotiate the future of bilateral trade after Canada’s April 28 election.
