U.S. President Donald Trump will unveil a new round of auto tariffs at 4 p.m. today from the Oval Office, according to White House Press Secretary Karoline Leavitt.
While the announcement has stirred immediate concern, the impact on the deeply integrated North American auto industry—which connects Canada, Mexico, and the U.S.—remains unclear. There were no immediate details on how the new tariffs will apply to vehicles and parts produced under the Canada-U.S.-Mexico Agreement (CUSMA), negotiated during Trump’s first term.
Trump has long threatened industry-specific duties on the auto sector as part of his broader, unpredictable trade war agenda. His previous statements indicated a plan to implement “reciprocal” tariffs by April 2, aligning U.S. duties with those charged by other countries.
Market reaction was swift: General Motors shares dropped 1.7%, while Ford saw a 1.5% decline in afternoon trading.
Earlier this month, Trump introduced 25% tariffs on steel and aluminum imports, including Canadian materials—further worrying automakers about rising production costs.
Auto industry stakeholders warn that expanding tariffs to include auto parts—especially those made with steel and aluminum—would significantly drive up costs across the supply chain.
Matt Blunt, President of the American Automotive Policy Council, said earlier that ending exemptions for Canada and Mexico “will add significant costs for automakers, suppliers and consumers.”
The auto trade issue has quickly become a political flashpoint in Canada, as the federal election campaign ramps up.
Prime Minister Mark Carney took to social media Wednesday to emphasize the vulnerability of Canada’s auto sector. “Auto parts cross the Canada-U.S. border six times on average before final assembly,” he wrote. “In a trade crisis, that’s a vulnerability. It’s time to build more cars at home with an All-In-Canada manufacturing network.”
Meanwhile, Conservative Leader Pierre Poilievre had a more direct message for Trump: “Knock it off.”
“These tariffs are causing chaos in markets and displacing workers on both sides of the border,” Poilievre said during a campaign stop in Montmagny, Quebec. “Stop threatening Canada with tariffs. Stop talking about our sovereignty.”
As anticipation builds for Trump’s official announcement, uncertainty looms for the future of North American auto manufacturing.