Ontario [Canada], April 4 (HBTV): In a strong retaliatory move against the United States, Canadian Prime Minister Mark Carney announced a 25 per cent tariff on all US vehicle imports that do not comply with the existing free trade agreement. The decision comes in response to US President Donald Trump’s imposition of reciprocal tariffs targeting Canada’s auto sector.

Carney stated that the revenue generated from these tariffs would be allocated to support Canadian auto workers and the domestic automobile industry.

Sharing the update on X on Thursday, Carney said: ‘In response to President Trump's tariffs on our auto sector, Canada will impose a 25% tariff on all US vehicle imports that do not comply with our free trade agreement. All revenues from these tariffs will be used to support our Canadian auto workers and their industry.’

He further added: ‘For US vehicles that comply with The Canada-United States-Mexico Agreement (CUSMA), Canada will also impose a 25% tariff on the content which is not from either Canada or Mexico. The revenue from those tariffs will also go directly to supporting Canada’s auto workers and their industry.’

Clarifying the scope of the Canadian response, Carney noted that, unlike the US tariffs, Canada's tariffs would not affect auto parts. ‘Our tariffs, unlike President Trump's, will not affect auto parts because we know the benefits of our supply chain,’ Carney wrote. He also announced that Canada would develop a support framework to incentivise production and investment in the domestic auto sector.

Calling the US tariffs ‘unjust’, Carney said the global economy had entered a new phase. ‘The global economy is fundamentally different today than yesterday. 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, including on automobiles,’ he stated. ‘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 US measures include a range of tariffs that came into effect over recent weeks. On March 4, the US imposed tariffs of 25% on various Canadian goods and 10% on energy and potash exports. On March 12, 25% tariffs were imposed on Canadian steel and aluminium products. Most recently, on April 3, a 25% tariff was applied to Canadian automobile imports, affecting a sector that employs more than 500,000 people across the country.

The US also plans to extend 25% tariffs to certain automobile parts before May 3.

Amid widespread international criticism, Trump declared a national economic emergency and announced sweeping tariffs affecting at least 180 countries and regions. According to US media reports, the tariff structure includes levies of 26% on India, 49% on Cambodia, 46% on Vietnam, 34% on China, 24% on Japan, and 20% on the European Union.

CNN reported that US stock markets experienced sharp declines in after-hours trading following Trump’s announcement from the Rose Garden. Markets worldwide are now awaiting the opening of Asian indices.(ANI)