'Old relationship is over': Canada hits US with 25% tariffs on American-made cars; over 3000 autoworkers laid off

Canada Prime Minister Mark Carney on Thursday (April 3) announced to respond to Trump's auto tariffs by imposing 25% tariffs on American cars.

He said that Canada is "matching the US approach with 25 per cent tariffs on all vehicles imported from the United States that are not compliant with CUSMA, our North American free trade agreement.”

“Our tariffs will not affect auto parts because we know the benefits of our integrated production system,” Carney said, adding “They will not affect vehicle content from Mexico.”

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He said all vehicles imported from the U.S. that are not compliant with CUSMA (which sets out North American content rules, not solely U.S.-made content rules) will be hit with matching counter-tariffs.

'3600 workers laid off'

Calling the impact of US tariffs "monumental", Carney said that the threats are "unjustified, unwarranted and in our judgment misguided."

He deplored the immediate impacts on auto plants here: 3,600 workers in Windsor who are now out of work.

'Relationship is over'

Carney said that while yesterday's baseline universal tariff did not specifically target Canada, it has upended the system of global trade that Canada has relied on since the end of WWII.

He said, "old relationship of steadily deepening integration with the United States … is over.”

He called it “a tragedy but it is also the new reality,” and said Canada has to respond with purpose and force, reprising many of the points he’s made since the election campaign launched.

He further described his announcement as “carefully calibrated.”

Moreover, Canada is rolling out these counter-tariffs “reluctantly” but notes Trump’s other threats against pharmaceuticals, semiconductor chips, lumber and agricultural sectors.

(With inputs from agencies)