Canada must respond to the United States’ unwarranted and unjustified tariffs that will fundamentally change the international trading system

While some important elements of the Canada U.S. trade relationship have been preserved, new tariffs on automobiles have now entered into force. These are on top of the previously announced tariffs, including those on steel and aluminum, which remain in place.

The U.S. tariffs will do harm to American workers and businesses, but Canada will also be impacted, with every Canadian feeling the effects. The Government of Canada’s position has always been clear: we will fight these tariffs, protect our workers, and build the strongest economy in the G7.

 “We will never cease to defend the interests of Canadians, safeguard our workers and businesses, and continue our pursuit to build the strongest economy in the G7”

“The global economy is fundamentally different today than yesterday,” Prime Minister Carney stated. “We must respond with purpose and force and take every step to protect Canadian workers and businesses against the unjust tariffs imposed by the United States.” 

Carney announced new countermeasures to protect Canadian workers and businesses and defend Canada’s economy. These include:

• Twenty-five per cent tariffs on non-CUSMA compliant fully assembled vehicles imported into Canada from the United States.
• Twenty-five per cent tariffs on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States.
• Canada’s intention to develop a framework for auto producers that incentivizes production and investment in Canada.

Most importantly, every single dollar raised from these tariffs will go directly to support our auto workers.

These measures build on the previously announced supports for workers and business.

• Temporarily waiving the one-week employment insurance (EI) waiting period.
• Suspending rules around separation for a six-month period, so workers don’t have to exhaust severance pay before collecting EI.
• Making it easier to access EI by increasing regional unemployment rate percentages.
• Deferring corporate income tax payments and GST/HST remittances from April 2 to June 30, 2025, providing up to $40 billion in liquidity to businesses.
• Deploying a new financing facility for businesses.
• Providing more funding to Canada’s regional development agencies, so they can better support businesses.

“In a crisis like this, it’s important to come together and act with strength, purpose, and force – and that’s exactly what we’re doing,” Carney added.

Historically, Canada and the United States set the global standard with the world’s most comprehensive and dynamic trading relationship in recent history, supporting millions of jobs while fostering economic security and integrated manufacturing never before seen. But the current President changed all that under the fictionalized guise of a Fentanyl emergency, and effectively derailed $2.5 billion worth of goods and services crossing the largest free border in the world every day.  

At present, the farming and meat processing industries may have dodged a reciprocal bullet on April 2, but with the current trade disruption and loss of trading partner trust, Canadian industry is left with no choice but diversify.  

“We will never cease to defend the interests of Canadians, safeguard our workers and businesses, and continue our pursuit to build the strongest economy in the G7.”