Canada has hit back with a 25% tariff on vehicles imported from the United States. The new tariffs will apply to non-CUSMA compliant fully assembled vehicles and content. The government will use money raised from the tariffs to support autoworkers.

Carney said they would be responding to the U.S. auto tariffs by matching the 25% tariffs on all vehicles that are not compliant with the Canada-U.S.-Mexico Agreement (CUSMA). The government will also impose a tariff on non-Canadian content of any CUSMA-compliant vehicles from the U.S, adding that Mexico won't be affected.

On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods and 10 per cent on energy and potash exports from Canada to the U.S. came into effect. On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.