The Canadian government has imposed retaliatory tariffs on U.S. vehicles, effective Wednesday, in response to U.S. President Donald Trump’s tariffs on Canadian automobiles. The tariffs will be 25% on the portion of each vehicle imported from the U.S. that did not originate in Canada or Mexico.
The move is expected to increase the price of U.S.-made autos by as much as 25% and could damage the integrated supply chain of the North American auto sector, which relies on trade between the U.S., Canada, and Mexico. The tariffs will remain in place until the U.S. eliminates its tariffs against the Canadian auto sector.