Toronto: Canadian Prime Minister Mark Carney has said that reciprocal tariffs imposed by the Administration of US President Donald Trump had made the global economy “fundamentally different”, even as he announced retaliatory levies on automobiles imported from America.
The reciprocal tariffs announced on Wednesday by Trump excluded Canada but tariffs on automobiles made in Canada went into force on Thursday. Responding to that, Ottawa announced 25 per cent tariffs on fully assembled vehicles imported into Canada from the United States that were not compliant with the Canada-United States-Mexico Agreement (CUSMA).
Similarly, 25 per cent tariffs were imposed on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States.
A statement from the PMO said the country’s “intention to develop a framework for auto producers that incentivizes production and investment in Canada.”
Carney said, “The global economy is fundamentally different today than yesterday. We must respond with purpose and force and take every step to protect Canadian workers and businesses against the unjust tariffs imposed by the United States, including on automobiles. We will never cease to defend the interests of Canadians, safeguard our workers and businesses, and continue our pursuit to build the strongest economy in the G7.”
On March 4, Washington had placed 25 per cent tariffs on imports from Canada earlier, excluding energy and potash products which were tariffed at 10 per cent. Later, on March 12, it also imposed similar tariffs on steel and aluminum made in Canada.
On April 3, US tariffs of 25 per cent on Canadian automobiles came into effect.
According to the PMO, the U.S. also intends to apply 25 per cent tariffs on certain automobile parts before May 3.
Canada has responded wit countermeasures including mmposing tariffs of 25 per cent on a valued CA$30 billion in goods imported from the US, effective March 4, 2025. On March 13, 2025, it imposed 25 per cent reciprocal tariffs on a list of steel products worth CA$12.6 billion and aluminum products worth CA$3 billion, as well as additional imported US goods worth CA$14.2 billion, for a total of CA$29.8 billion to match American tariffs on steel and aluminum dollar-for-dollar.
On Thursday, Carney also met with leaders of Canada’s provinces and territories to discuss a “co-ordinated response to the United States’ auto and reciprocal tariffs.”
“Prime Minister Carney consulted with premiers on a response that maximizes impacts in the U.S., minimizes impacts on Canadians, and avoids escalating a trade crisis that Canada has worked hard to prevent,” a statement from the PMO noted.
After becoming PM last month, Carney spoke to Trump for the first time on March 28 in what was then described as a “very constructive conversation.”
Trump’s tariffs are playing a central role in influencing the ongoing Federal election campaign to the advantage of the ruling Liberal Party, which has surged to a lead over the opposition Conservative Party.
