April 3, 2025
Ottawa, Ontario
Yesterday, the United States administration announced a series of unwarranted and unjustified tariffs 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. 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.
The Prime Minister of Canada, Mark Carney, today announced new countermeasures to protect Canadian workers and businesses and defend Canada’s economy. These countermeasures 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.
Most importantly, every single dollar raised from these tariffs will go directly to support our auto workers.
These measures build on the Government of Canada’s previously announced supports to Canadian 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.
- Providing more funding to Canada’s regional development agencies, so they can better support businesses.
In a crisis like this, it’s important to come together and act with strength, purpose, and force – and that's exactly what we’re doing.
Quote
“The global economy is fundamentally different today than yesterday. 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.”
— The Rt. Hon. Mark Carney, Prime Minister of Canada
Quick Facts
- 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.
- The U.S. also intends to apply 25 per cent tariffs on certain automobile parts before May 3. Under the U.S. tariffs certain exclusions linked to U.S. content may be available, specifically, the application of the 25 per cent tariff only to the value of the non-U.S. content in automobiles and auto parts that qualify for preferential tariff treatment under CUSMA.
- Canada has responded to the U.S. imposition of tariffs on Canadian goods by introducing a suite of countermeasures designed to compel the U.S. to remove the tariffs as soon as possible. These countermeasures include:
- Imposing tariffs of 25 per cent on a valued $30 billion in goods imported from the U.S., effective March 4, 2025.
- Launching a public comment period on potential counter tariffs on additional imports from the U.S.
- Imposing, as of March 13, 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 to match U.S. tariffs on steel and aluminum dollar-for-dollar.
Associated Links
- Canada-United States relations
- Canada’s response to U.S. tariffs on Canadian goods
- The Canada-United States-Mexico Agreement (CUSMA)
- Prime Minister Carney meets with premiers to discuss Canada’s response to U.S. tariffs
- Prime Minister Carney speaks with President of the United States Donald J. Trump
April 3, 2025
Ottawa, Ontario
Today, the Prime Minister, Mark Carney, spoke with the Chancellor of Germany, Olaf Scholz.
Prime Minister Carney and Chancellor Scholz highlighted the successes of Hannover Messe, the world’s leading trade show for industrial technology, for which Canada is the Partner Country for 2025.
The two leaders discussed the importance of reliable partners working together to protect transatlantic security and deepen economic ties, particularly in the current global trade context. The Prime Minister shared his plan to fight the United States’ unjustified trade actions against Canada, protect Canadian workers and businesses, and build Canada’s economy.
Prime Minister Carney and Chancellor Scholz underscored the close bilateral relationship between Canada and Germany, and they agreed to remain in close contact.
Associated Links
April 3, 2025
Ottawa, Ontario
Today, the Prime Minister, Mark Carney, met virtually with provincial and territorial premiers to discuss Canada’s co-ordinated response to the United States’ auto and reciprocal tariffs. The Prime Minister was joined by the Minister of International Trade and Intergovernmental Affairs and President of the King’s Privy Council, Dominic LeBlanc.
Canada’s First Ministers condemned the ongoing imposition of tariffs, which put thousands of good-paying jobs in both Canada and the U.S. at risk. While some important elements of the Canada-U.S. relationship have been preserved, Prime Minister Carney noted that the U.S. trade action will cause profound economic damage.
First Ministers discussed how Canada is responding to the latest U.S. tariffs and defending the Canadian economy. Prime Minister Carney consulted with premiers on a response that maximizes impacts in the U.S., minimizes impacts on Canadians, and avoids escalating a trade crisis that Canada has worked hard to prevent. Canada will ensure that the proceeds of retaliatory tariffs will support workers and businesses affected by the U.S. tariffs. The Prime Minister noted the importance of maintaining resolve and unity as we confront this challenge.
Prime Minister Carney shared updates with premiers on his recent conversations with U.S. and other international partners, including the President of Mexico, Claudia Sheinbaum.
Prime Minister Carney committed to continuing to meet with the premiers in the weeks ahead.
Associated Links
- Canada-United States relations
- Canada’s response to U.S. tariffs on Canadian goods
- Prime Minister Carney speaks with President of the United States Donald J. Trump
- Prime Minister Carney speaks with President of Mexico Claudia Sheinbaum
- Prime Minister Carney meets with premiers to discuss Canada’s response to U.S. tariffs
