Canada Hits Back with 25% Tariff on U.S. Vehicles
Punchline: Canada fires back as trade tensions heat up.

Canada has announced a 25% tariff on U.S. vehicles in response to what it calls “unjustified and unwarranted” tariffs from the United States. This move comes after the U.S. imposed steep taxes on Canadian steel, aluminum, and vehicles, despite sparing Canada from new trade levies in a broader global tariff rollout.
Prime Minister Mark Carney says the U.S. actions violate trade agreements and threaten economic stability. The Canadian tariffs will specifically target American cars that do not meet the rules under the United States-Mexico-Canada Agreement (USMCA), while excluding parts and components sourced from Mexico.
Canada expects to generate about $8 billion from the new tariffs, which will be used to support domestic workers and industries affected by the U.S. measures. Carney also signaled a shift in Canada’s trade priorities, calling for stronger ties with more reliable global partners and emphasizing the need to move away from one-sided dependence on the U.S. economy.
The decision comes amid growing political and market backlash against the U.S. tariffs, which have already triggered major stock market losses. Carney made it clear: Canada will challenge every unfair move and stand firm in protecting its national interests.

Jasmine Franks
Reporter
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