From: Department of Finance Canada
News release
April 8, 2025 – Ottawa, Ontario – Department of Finance Canada
The Minister of Finance, the Honourable François-Philippe Champagne, today confirmed that Canada’s new countermeasures announced last week in response to the unjustified tariffs imposed by the United States on the Canadian auto industry will come into force at 12:01 a.m. EDT on April 9.
As the Prime Minister indicated on April 3, this includes:
- Twenty-five per cent tariffs on non- Canada-U.S.-Mexico Agreement (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.
A remission framework for auto producers that incentivizes production and investment in Canada, and helps maintain Canadian jobs, will also be implemented. Further details of this framework will be announced shortly.
Minister Champagne also announced that the government has granted a special exemption from previous tariff countermeasures on U.S. consumer and household products to the residents of Campobello Island, New Brunswick. This special exemption is in recognition of the island’s unique situation, which is only accessible by road via the United States year-round.
Quotes
“Canada continues to respond forcefully to all unwarranted and unreasonable tariffs imposed by the U.S. on Canadian products. The government is firmly committed to getting these U.S. tariffs removed as soon as possible, and will protect Canada’s workers, businesses, economy and industry.”
– The Honourable François-Philippe Champagne, Minister of Finance
Quick facts
- On March 4, 2025, U.S. tariffs of 25 per cent on Canadian goods and 10 per cent on energy and potash exports from Canada to the U.S. came into effect. The U.S. subsequently limited these tariffs to non-CUSMA compliant goods.
- On March 12, 2025, the U.S. imposed tariffs of 25 per cent on Canadian steel and aluminum products.
- On April 3, U.S. tariffs of 25 per cent on Canadian automobiles came into effect, targeting the auto industry and the more than 500,000 Canadians this industry supports across the country.
- The U.S. also intends to apply 25 per cent tariffs on certain automobile parts on May 3. Under the U.S. tariffs certain exclusions linked to U.S. content may be available, specifically the application of the 25 per cent tariff only to the value of the non-U.S. content in automobiles and auto parts that qualify for preferential tariff treatment under CUSMA.
- Canada has responded to the U.S. imposition of tariffs on Canadian goods by introducing a suite of countermeasures designed to compel the U.S. to remove the tariffs as soon as possible. These countermeasures include:
- Imposing tariffs of 25 per cent on $30 billion in goods imported from the U.S., effective March 4, 2025.
- Holding a public comment period on potential counter tariffs on additional imports from the U.S.
- Imposing, as of March 13, 2025, 25 per cent reciprocal tariffs on a list of steel products worth $12.6 billion and aluminum products worth $3 billion, as well as additional imported U.S. goods worth $14.2 billion, for a total of $29.8 billion.
- Imposing, as of April 9, 25 per cent tariffs on non-CUSMA compliant U.S.-made vehicles, and on the non-Canadian and non-Mexican content of CUSMA compliant U.S.-made vehicles. Vehicle imports from the U.S. totalled $35.6 billion in 2024.
Related products
- List of vehicle products from the United States subject to 25 per cent tariffs effective April 9, 2025
- Government launches consultations on trade measures to prevent diversion of steel products into Canada
- Canada responds to unjustified U.S. tariffs on Canadian steel and aluminum products
- Canada’s response to U.S. tariffs on Canadian goods
- Canada announces robust tariff package in response to unjustified U.S. tariffs
- Fighting for Canadian workers and businesses
- Process for requesting remission of tariffs that apply on certain goods from the U.S.