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.
The new tariffs went into effect April 9, per a news release from the Department of Finance Canada. The full list of U.S. exports subject to the tariffs include passenger vehicles and light cargo trucks, per the Department of Finance Canada.
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.
Editor’s note: This story was updated with additional details from the Department of Finance Canada, including the implementation date for the tariffs.