Trump Tariffs: Canada hits back, PM Mark Carney says will impose 25% tariffs on vehicles imported from US

Retaliating to Trump Tariffs, Canadian Prime Minister Mark Carney on Thursday said that they will impose a 25 percent tariff on some autos imported from the United States.

Trump's previously announced 25% tariffs on auto imports took effect Thursday.

Prime Minister Mark Carney announced "25 percent tariffs on all vehicles imported from the United States that are not compliant with CUSMA," using the Canadian acronym for an existing North America free trade agreement, reported AFP.

However, Carney did not immediately offer detail on how many vehicles could be impacted by Canada's retaliation.

Carney's announcement comes as President Donald Trump's sweeping tariffs on US imports sparked threats of retaliation.

The Canadian PM said that he told Trump last week in a phone call that he would be retaliating for the those tariffs.

"We take these measures reluctantly. And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.

Carney added that Canada won't put tariffs on auto parts as Trump has done, because he said Canadians know the benefits of the integrated auto sector.

Canadians are already seeing the impact, added the Prime Minister.

A former two-time central banker said that Trump's actions will reverberate in Canada and across the world. “They are all unjustified and unwarranted and in our judgement misguided,” Carney said.

Meanwhile, Conservative Leader Pierre Poilievre pledged to remove the federal sales tax on new Canadian-made cars. The Conservative leader is also calling on provincial governments to follow suit in removing sales taxes, reported Bloomberg.

Trump said he would impose a 10% baseline tariff on all imports to the United States and higher targeted duties on some of the country's biggest trading partners, hammering goods from Italian coffee and Japanese whisky to sportswear made in Asia.