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On Wednesday, 9 April, Canada officially imposed 25 per cent duties on cars and auto parts from the United States, a decisive response to Washington’s trade aggression.
This was announced by Canadian Prime Minister Mark Carney on his page on the social network X (formerly Twitter).
“At 00:01, Canadian mirror duties will come into effect. We are imposing a 25% duty on all US cars that do not meet the terms of the free trade agreement and a 25% duty on auto parts that do meet those terms but do not originate in Canada or Mexico,” Carney said.
Who started it first: Trump is on the offensive again
A new round of trade confrontation was triggered by US President Donald Trump, who announced in late March that he would impose 25% duties on imported cars. This move triggered a wave of criticism in North America and a swift response from Ottawa.
Carney directly pointed to the cause of the escalation:
“It was President Trump who caused this trade crisis – and Canada is responding with purpose and determination.”
Protecting the economy and jobs
The Minister of Finance of Canada, François-Philippe Champagne, stressed that the government’s actions are aimed at protecting the Canadian economy, production and jobs.
“We are determined to get the U.S. tariffs lifted as soon as possible, while protecting Canadian workers, businesses and industries,” he said.
What does this mean for consumers and the market?
According to preliminary estimates, prices for American cars in Canada will increase, which could affect demand and change market dynamics. Automakers that rely on US components may also face logistical and cost challenges.
Small dealers and consumers who are not ready for higher prices will also suffer. Experts warn that if the escalation continues, it could threaten the stability of the North American Free Trade Area (USMCA).
The new duties are yet another manifestation of the growing trade tensions between the US and Canada, which have flared up periodically since Trump’s presidency, despite the ratified USMCA.
The coming months will show whether this will lead to a new “car war” between the continental neighbours.
