Trump Targets Canada Again: 25% Auto Tariff Sparks Outrage
President Donald Trump signed an executive order on Wednesday imposing a 25% tariff on all automobile imports into the U.S., sparking confusion and concern for Canada’s deeply integrated automotive industry.
Canadian Prime Minister Mark Carney swiftly criticized the tariffs, calling them a “direct assault” on Canadian auto workers. He pledged rapid action to support and protect those affected.
“We will defend our workers, our businesses, and our country—and we will do it united,” Carney said at an event in Kitchener, Ontario.
Carney described the tariffs as incompatible with the Canada-U.S.-Mexico Agreement (CUSMA) and the historical Canada-U.S. Auto Pact of 1965. Under CUSMA, negotiated during Trump’s previous administration, most automobile parts must originate in North America to qualify for tariff-free status.
The White House clarified in a fact sheet that vehicles meeting CUSMA criteria would only face tariffs on content manufactured outside the U.S., pending a process established by Commerce Secretary Howard Lutnick and U.S. Customs.
Trump announced that tariffs on other automobile imports would begin April 2, with tariff collection starting the next day. The levy also targets key automotive components, including engines, transmissions, and electrical parts.
Trump insisted these tariffs would be permanent, pressuring automakers to relocate parts manufacturing to the United States.
The volatile trade measures have caused market uncertainty. Shares of major automakers—Stellantis, Ford, General Motors, and Tesla—declined in after-hours trading following Trump’s announcement.
This latest move coincides with Canada’s ongoing federal election campaign, thrusting tariffs and Trump’s threats regarding Canada’s sovereignty into the spotlight for voters before the April 28 election.
Conservative leader Pierre Poilievre urged Trump to “knock it off,” emphasizing the economic disruption the tariffs cause to both nations. “Stop threatening our sovereignty,” Poilievre said while campaigning in Montmagny, Quebec.
NDP leader Jagmeet Singh criticized Carney for not recalling Parliament to implement emergency measures protecting workers from potential layoffs. Carney previously waived the one-week waiting period for employment insurance last week.
Dave McDowell, president of Unifor Local 1859 and an employee at THK Rhythm Automotive in St. Catharines, Ontario, said the tariffs have heightened industry uncertainty. “Workers are anxious,” McDowell noted, pointing to ongoing unpredictability as a challenge.
Lana Payne, national president of Unifor, stressed the importance of the Canadian auto industry, vowing the union would vigorously protect Canadian jobs. “These jobs belong to Canadians, not Donald Trump,” Payne declared.
Earlier this month, Trump imposed sweeping tariffs on Canada, partially suspending them shortly afterward. However, 25% tariffs on steel and aluminum imports from Canada remain active.
Ontario Premier Doug Ford expressed frustration after previously receiving assurances from the U.S. that additional tariffs wouldn’t occur. “The U.S. administration sometimes can’t predict President Trump’s actions,” Ford commented.
Ford encouraged Carney to convene a meeting with provincial premiers to coordinate retaliation against ongoing U.S. tariffs. “Either we give in or we stand and fight,” Ford said. “I choose to fight.”