Canada will levy a 25% tariff on U.S. car imports not compliant with the United States-Mexico-Canada Agreement as a countermeasure to its southern neighbor’s own levies, Prime Minister Mark Carney said Thursday.
Carney did not provide a specific implementation date for the new tariffs. A Department of Finance Canada official told Supply Chain Dive in an email that the administration will share more information once it is available.
The U.S. began charging a 25% tariff on all car imports Thursday, with a similar duty on automotive parts set to begin May 3. However, car shipments to the U.S. compliant with the USMCA are not subject to the import tax.
“We are responding today with, and we have responded throughout, with carefully calibrated and targeted counter tariffs,” Carney said in a press briefing Thursday, noting that Canada will also be charging the 25% tariff on non-Canadian content of USMCA-compliant vehicles from the U.S.
Canada will not, however, charge the tariff on U.S. automotive parts, and the duties will not impact vehicle content from Mexico, Carney said.
