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June 19, 2025
World

Canada’s 25% tariffs on US automobile imports take effect

The Canadian government announced the implementation of new customs measures starting Wednesday, including a 25% tariff on imported vehicles of certain US brands, in response to a similar move by the administration of US President Donald Trump, which imposed tariffs on the Canadian auto sector.The Department of Finance Canada said in an official statement that these duties will remain in effect until the United States lifts the tariff measures targeting the Canadian auto sector.It clarified that US goods that were en route to Canada before the date these duties took effect will not be subject to the new measures.The Canadian government also published additional technical details on how the duties will be applied on the Canada Border Services Agency (CBSA) website, to clarify the implementation mechanism for importers and traders.Canadian Prime Minister Mark Carney announced the decision on April 3 without specifying an implementation date. However, the decision officially took effect today, hours after the United States imposed a similar tax on all imported cars, including Canadian ones.Canada previously filed a formal complaint with the World Trade Organization (WTO) against the US tariffs, arguing that these measures contravene international trade rules. The WTO said that Canada has requested that consultations be opened to resolve the dispute with the United States regarding the 25% tariff on automobiles and auto parts. Carney previously asserted that the US tariffs will fundamentally change the nature of international trade, pledging to respond with countermeasures targeting steel, aluminum, and automobiles, given their direct impact on the Canadian economy and millions of citizens.

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