Canada’s Government has published a statement on 3 April 2025 outlining new countermeasures in response to the tariffs introduced by the US President Donald Trump on 2 April 2025.
The statement claims that 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-US 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.
It adds that the US 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, also announced new countermeasures on 3 April 2025 to protect Canadian workers and businesses and defend Canada’s economy. These countermeasures include:
- 25% tariffs on non-CUSMA compliant fully assembled vehicles imported into Canada from the United States.
- 25% 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 incentivises production and investment in Canada.
“Most importantly, every single dollar raised from these tariffs will go directly to support our auto workers,” he added.
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 2 April 2025 to 30 June 2025 providing up to CAD 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,” said Carney.
“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, ” he added.
Earlier, on 5 March 2025, Canada’s former Prime Minister Justin Trudeau, announced that Canada will implement 25% tariffs on CAD 155 billion of American products following Trump’s new 25% tariffs on imports from Canada.
On 2 April 2025, Trump signed an executive order imposing a 10% tariff on all imports and called it a bold move against unfair trade practices, claiming the US was being exploited, even by close allies.