Overview

• Canada announced a 25% tariff on U.S. vehicles that do not comply with the Canada-United States-Mexico Agreement (CUSMA), directly responding to U.S. President Donald Trump’s auto import tariffs.
• Prime Minister Mark Carney emphasized that the tariffs are designed to minimize disruption to Canada’s economy while targeting U.S. vulnerabilities.
• The Stellantis plant in Windsor, Ontario, will temporarily shut down for two weeks starting April 7, affecting more than 3,500 workers, highlighting the immediate economic impact of the trade dispute.
• Canada’s tariffs exclude auto parts to preserve the integrated nature of the North American auto industry, where parts often cross borders multiple times during production.
• Ontario Premier Doug Ford expressed support for the federal response, emphasizing the importance of negotiating from a position of strength while advocating for relief measures for affected workers.