Ontario: Prime Minister Mark Carmey of Canada said that the nation would apply a 25% tax on any US automobile imports that do not adhere to the free trade agreement, in response to US President Donald Trump’s proposal of reciprocal tariffs.

The prime minister of Canada said that the money raised by these levies will be used to help the nation’s car sector and its employees.

“Canada will impose a 25% tariff on all US vehicle imports that do not comply with our free trade agreement in response to President Trump’s tariffs on our auto sector,” Carney said in a post shared on X on Thursday (local time). All of the money raised by these levies will go towards helping our Canadian autoworkers and their sector.

“Canada will additionally impose a 25% tariff on the content that is not from either Canada or Mexico for US vehicles that adhere to the Canada-United States-Mexico Agreement (CUSMA).” Additionally, the article said that the money raised by such levies will be used directly to benefit Canadian auto workers and their sector.

Carney said that Canada will implement different duties than the US and that, in contrast to President Trump, the levies would not apply to car components.

Since we are aware of the advantages of our supply chain, our tariffs—unlike those imposed by President Trump—will not impact car components. In order to encourage production and investment in Canada, Canada will also create a framework of assistance for automakers, Carney wrote on X.

Carmey described the U.S. tariffs, especially those on cars, as “unjust” when retaliatory penalties were announced, adding that the “global economy is fundamentally different today than yesterday.”
“Today’s global economy is essentially different from yesterday’s. In order to defend Canadian firms and workers from the unfair tariffs imposed by the United States, notably on autos, we must act decisively and forcefully. Carney said, “We will never stop protecting our businesses and workers, defending the interests of Canadians, and working to create the most robust economy in the G7.”

Notably, US tariffs of 10% on Canadian oil and potash exports to the US and 25% on Canadian commodities went into force on March 4. The United States levied 25% tariffs on Canadian steel and aluminum goods on March 12.

Targeting the car sector and the more than 500,000 Canadians it employs nationwide, the United States imposed 25% tariffs on Canadian autos on April 3.

Before May 3, the US also plans to impose 25% tariffs on some vehicle components.

Trump proposed tariffs of at least 10% on all nations, with rates considerably higher for 60 countries, and proclaimed a national economic emergency amid international outcry.

More than 180 nations and regions would be subject to duties, according to US media, which also noted that the tariff proposal placed significant taxes on numerous countries, including 26% on India, 49% on Cambodia, 46% on Vietnam, 34% on China, 24% on Japan, and 20% on the EU.

As President Donald Trump made speeches in the Rose Garden and announced broad tariffs, CNN reported on Thursday that US markets fell in after-hours trade. When the Asian indexes start trading, all eyes will be on them.