Canada Strikes Back: New Tariffs Shake Up U.S. Auto Imports

Mark Carney, the new Canadian Prime Minister, announced a 25% tariff on certain U.S. auto imports, targeting non-compliant vehicles under the USMCA trade agreement. This move is a part of a broader strategy to counter U.S. tariffs on Canadian goods, affecting a wide range of products.

In a bold move on Thursday, Canada's Prime Minister Mark Carney unveiled a strategic countermeasure to the United States' auto tariffs, imposing a decisive 25% import tariff on vehicles that fail to meet USMCA trade deal standards. This initiative marks Carney's first major trade policy since succeeding Justin Trudeau last month.

The U.S., under President Donald Trump, had previously instated steep tariffs beginning March 6, with Canada responding robustly. The targeted Canadian tariffs, estimated to raise around C$8 billion, will essentially benefit auto workers and others impacted by these trade tensions.

In addition to auto tariffs, Canada has launched extensive retaliatory measures against the U.S., covering a wide spectrum of consumer goods and effectively impacting sectors including technology and energy. This ongoing trade conflict has led to significant policy shifts, including Canada's decision to freeze agreements with prominent U.S.-based companies like Tesla, highlighting the gravity of the economic and diplomatic stakes involved.

(With inputs from agencies.)