Canada Strikes Back with Auto Tariffs in Retaliation to Trump’s Trade Offensive

Canada has ramped up its trade retaliation against the United States, unveiling targeted tariffs on American-made vehicles in direct response to ongoing duties imposed by the Trump administration.

The federal government’s move follows a new round of sweeping tariffs from Washington, which came into effect just after midnight. These include a 10 per cent baseline tariff on most imports, with higher rates applied to dozens of countries. While Canada avoided the latest global round, it remains a key target of U.S. tariffs on steel, aluminum, and automobiles, along with looming fentanyl-linked economic sanctions.

In response, Ottawa has implemented its own countermeasures—slapping tariffs on U.S. vehicle imports while deliberately excluding auto parts and Mexican-made components to preserve North American supply chain stability.

President Donald Trump, undeterred by market volatility and mounting criticism, claimed Tuesday that many countries are now seeking trade deals with the U.S., yet emphasized that tariffs would remain in place to generate revenue. His escalating trade tactics have begun to fracture Republican unity in Congress, with several senators questioning whether the strategy will ultimately harm U.S. interests.

Canada’s calculated retaliation reflects a broader effort to defend national industries without derailing regional trade cooperation. As economic uncertainty intensifies, both nations are bracing for the next phase of an increasingly contentious trade battle.