Toronto 
Canada’s latest countermeasures in response to U.S. tariffs on Canadian automobiles will take effect on April 9, according to an announcement by Finance Minister François-Philippe Champagne.
Credit: Roberto Nickson/Pexels
The new measures include a 25 per cent tariff on fully assembled vehicles imported from the United States that do not meet the rules of origin requirements under the Canada-United States-Mexico Agreement (CUSMA). A similar tariff will apply to the non-Canadian and non-Mexican content of vehicles that do meet CUSMA conditions.
These actions come in direct response to recent U.S. trade restrictions. On April 3, the U.S. imposed a 25 per cent tariff on Canadian automobiles, affecting an industry that supports over 500,000 Canadian workers. Earlier, in March, the U.S. had enacted tariffs on Canadian steel, aluminum, and energy exports, though some limitations have since been placed on those measures.
At 12:01 EDT tonight, Canada’s counter-tariffs will come into force.
There will be 25% tariffs on all non-CUSMA-compliant vehicles from the U.S., and 25% tariffs on the contents of CUSMA-compliant vehicles that are not from Canada or Mexico.
President Trump caused this trade…
— Mark Carney (@MarkJCarney) April 8, 2025
Per the news release, Canada will introduce a remission framework aimed at encouraging investment and job retention in the country’s auto sector to support domestic producers. Further details on this framework are expected in the near future.
The government also confirmed a special exemption from existing U.S.-related counter-tariffs for residents of Campobello Island, New Brunswick. This exception recognizes the community’s geographic reliance on U.S. road access for year-round connectivity.
Canada’s tariffs will only apply to vehicles originating from the United States as determined by Canadian customs regulations. Goods already in transit as of April 9 will not be subject to the new measures.
Vehicle imports from the U.S. reached $35.6 billion in 2024. The targeted products span a wide range of vehicle types, including gasoline, diesel, hybrid, and electric passenger vehicles, as well as light commercial trucks. The full list of tariff-eligible items aligns with Canada’s Customs Tariff schedule.
The countermeasures will remain in place until the U.S. withdraws its tariffs on Canadian automotive goods. The federal government has maintained that it will continue to take action to defend Canadian industries from what it considers unjustified U.S. trade actions.
List of Canada’s Countermeasures:
- 25 per cent tariffs on $30 billion in goods imported from the U.S., effective March 4, 2025.
- 25 per cent reciprocal tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion, effective March 13, 2025.
- 25 per cent tariffs on non-CUSMA compliant U.S.-made vehicles, and on the non-Canadian and non-Mexican content of CUSMA compliant U.S.-made vehicles, effective April 9, 2025.
More Information: List of vehicle products from the United States subject to 25 per cent tariffs effective April 9, 2025
