Canada is set to implement new countermeasures in response to tariffs announced by the United States.
Canadian officials say the United States administration announced a series of unwarranted and unjustified tariffs on Wednesday that will fundamentally change the international trading system.
While some important elements of the Canada U.S. trade relationship have been preserved, new tariffs on automobiles have now entered into force, Canadian officials added.
These are on top of the previously announced tariffs, including those on steel and aluminum, which remain in place.
The U.S. tariffs will do harm to American workers and businesses, but Canada will also be impacted, with every Canadian feeling the effects.
The Government of Canada’s position has always been clear: we will fight these tariffs, protect our workers, and build the strongest economy in the G7, Canadian officials say.
Prime Minister Mark Carney announced the new countermeasures on Thursday, which include:
– Twenty-five per cent tariffs on non-CUSMA compliant fully assembled vehicles imported into Canada from the United States.
– Twenty-five per cent tariffs on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States.
– Canada’s intention to develop a framework for auto producers that incentivizes production and investment in Canada.
Canadian officials added every single dollar raised from these tariffs will go directly to support auto workers.
The new measures build on the Canada’s previously announced supports to workers and business, including:
– Temporarily waiving the one-week employment insurance (EI) waiting period.
– Suspending rules around separation for a six-month period, so workers don’t have to exhaust severance pay before collecting EI.
– Making it easier to access EI by increasing regional unemployment rate percentages.
– Deferring corporate income tax payments and GST/HST remittances from April 2 to June 30, 2025, providing up to $40 billion in liquidity to businesses.
– Deploying a new financing facility for businesses.
“The global economy is fundamentally different today than yesterday,” Prime Minister Carney stated, in a media release.
“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.”
Canadian officials say Canada and the United States have the world’s most comprehensive and dynamic trading relationship, which supports millions of jobs in both countries.
US$2.5 billion worth of goods and services cross the border every day.
On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods and 10 per cent on energy and potash exports from Canada to the U.S. came into effect.
On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.
On April 3, U.S. tariffs of 25 per cent on Canadian automobiles came into effect, targeting the auto industry and the more than 500,000 Canadians this industry supports across the country, Canadian officials say.
The U.S. also intends to apply 25 per cent tariffs on certain automobile parts before May 3, Canadian officials say.
Conservative Leader Pierre Poilievre also announced on Thursday that he will take the GST off the sale of new Canadian-made cars, after Trump announced unjustified tariffs on Canada’s auto sector.
Conservative officials say this will boost the sale of new Canadian-made cars, supporting the auto industry and protecting workers’ jobs.
Poilievre says he will also create the ‘Keep Canadians Working Fund’, a targeted, temporary loan and credit program for businesses directly hit by Trump’s tariffs, to keep workers working.
“In addition to unfair and counterproductive tariffs on our aluminum and steel, President Trump is now going after our auto workers,” Poilievre stated, in a media release.
“The president is betraying America’s closest friend and attacking our economy, proving once again that Canada must end its era of over-dependence and weakness. I will stand up for Canada and protect our autoworkers by axing the GST on cars we make here at home.”
President Trump’s decision to slap a 25% tariff on Canadian-made vehicles is a direct attack on workers and the automotive industry, jeopardizing thousands of jobs.
To counter “this unjustified attack”, Poilievre says he will temporarily remove the Goods and Services Tax (GST) on purchases of all new Canadian-manufactured vehicles.
The GST will be removed as long as Trump’s tariffs remain in place, Poilievre added.
NDP Leader Jagmeet Singh announced a plan on Wednesday to protect Canadian workers and families from Donald Trump’s trade war, vowing to safeguard jobs, strengthen public services, and ensure middle-class Canadians don’t bear the cost of reckless tariffs.
Singh’s strategy includes expanding Employment Insurance, investing in infrastructure and green energy, capping grocery prices, and using retaliatory tariffs to directly support affected industries.
The plan also cracks down on corporate greed, strengthens public health care, and introduces a “No-Trade” clause to protect Canada’s sovereignty in future negotiations.
