Canadian Prime Minister Mark Carney announced the imposition of tariffs of 25% on all vehicles imported from the United States that do not meet the terms of the North American Free Trade Agreement (CUSMA), in direct response to the new US measures.

Carney also said the new tariffs will not apply to auto parts and will not affect the content of vehicles from Mexico.

The US tariffs on cars, which came into force at midnight (local time), have already had an impact: the Stellantis plant in Windsor, Ontario, which employs 3,600 workers, will suspend operations for two weeks from Monday due to the impact of the US sanctions.

Yesterday, Canada was spared new U.S. measures, but still faces three sets of tariffs: the 25% general tariffs on Canadian products, the 25% global tariffs on steel and aluminum – where Canada is a key U.S. supplier – and the general tariffs on automobiles.

Carney stressed that he will fight to repeal each of these measures and that his government has already taken the matter to the World Trade Organization, deeming the U.S. actions illegal under international trade law.