Canadian counter-tariffs on U.S. vehicles necessary retaliation

TORONTO, April 9, 2025 /CNW/ - Canadian counter-tariffs of 25% on vehicles imported from U.S., which came into effect today, are a necessary retaliation says Unifor.

"There is absolutely no justification for the United States to impose tariffs on Canadian vehicles. Canada did not start this trade war, but we have no choice but to fight. We refuse to back down and sacrifice Canada's auto jobs and industry on Donald Trump's alter," said Unifor National President Lana Payne.

Canadian counter-tariffs of 25% on vehicles imported from U.S., which came into effect today. (CNW Group/Unifor)

The new Canadian 25% counter-tariffs apply to fully-assembled vehicles imported into Canada from the U.S. that are non-compliant with the Canada-U.S.-Mexico Agreement (CUSMA). Imported vehicles that are compliant with the CUSMA, will only face tariffs on content not originating in Canada or Mexico. The counter-tariff does not include U.S. auto parts imported to Canada for manufacturing.

"These tariffs drive home the fact that Canada and the U.S. share an extraordinary and exceptional history manufacturing vehicles and parts together, and that Canada is still the largest international customer of U.S. made vehicles," added Payne. "Canada's response is aggressive but also designed to limit damage to Canadian jobs and our auto sector." 

Within days of the U.S. imposing tariffs on Canadian vehicles, Stellantis announced the temporary shutdown of factories in Canada, Mexico and the United States, resulting in thousands of layoffs, including thousands more throughout the supply chain.

Importantly the federal government has committed that funds raised by the auto import tariff will go directly to support auto workers impacted by the trade war.

"We will not accept auto workers being treated as collateral damage in Donald Trump's senseless trade war with Canada," said Payne. "Unifor will fight to ensure that our members in auto, steel, aluminum, forestry, energy, mining, and any other sector injured by these senseless economic attacks is supported until the last unjust U.S. tariff is lifted."

The Canadian counter-tariffs closely match auto tariffs imposed by the U.S. on Canadian vehicles, in clear violation of the CUSMA trade agreement negotiated by the previous Trump administration. The U.S. has also implemented a 25% import tariff on Canadian steel and aluminum with plans to hike existing duties on Canadian softwood lumber to 34.45%. An additional 25% tariff on Canadian goods and 10% tariff on energy and potash imported to the U.S. is also in effect on non-CUSMA compliant goods.

The U.S. has imposed tariffs on Canada's auto sector despite shared experiences with industrial job losses, factory closures and heavy non-North American import penetration. 

Unifor looks forward to additional details of the federal government's announced remission framework to incentivize auto makers to invest and maintain and grow Canadian jobs.

Read Unifor's recommendations to protect jobs and shore up the economy here.

Unifor is Canada's largest union in the private sector, representing 320,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada and abroad, and strives to create progressive change for a better future. 

SOURCE Unifor

For media inquiries or to arrange interviews via FaceTime, Zoom, or Skype please contact Unifor Communications Director Kathleen O'Keefe at [email protected] or by cell at [phone].