The US 25% tariffs imposed on cars imported from Canada could be further increased, said President Donald Trump yesterday, 23 April 2025.
“When I put tariffs on Canada – they’re paying 25% – but that could go up, in terms of cars. All we’re doing is we’re saying, ‘We don’t want your cars, in all due respect. We want, really, to make our own cars,” Trump told reporters in the Oval Office.
Earlier, Trump issued an executive order imposing a 25% tariff on imports from Canada and other major trading partners, including Mexico and China, on 30 January 2025.
On 5 March 2025, the Trump Administration announced it would exempt automakers from the tariffs on Canada for one month following discussions with the “Big Three” automakers – Stellantis, Ford, and General Motors. Trump approved the temporary tariff exemption under the United States-Mexico-Canada Agreement (USMCA).
The USMCA allows goods to move tariff-free between the three countries (US, Canada, Mexico) if they are made entirely in North America or significantly transformed there using components from other countries. The USMCA entered into force on 1 July 2020.
Canada’s finance minister, François-Philippe Champagne, confirmed on 8 April 2025 that new countermeasures, announced on 2 April 2025, in response to US tariffs on the Canadian auto industry, took effect on 9 April 2025. Canada introduced these measures to push the US to remove what it calls unjustified tariffs.
