Canada Imposes 25% Tariffs on US Auto Imports, Escalating Trade Dispute

In a move to counter retaliatory tariffs imposed by the United States, Canada has enforced 25% tariffs on non-compliant auto imports from the U.S., escalating tensions in the trade dispute between the two countries. 2025 saw this escalation as the Canadian government announced these measures, targeting vehicles imported from the U.S. without adherence to the Canada-United States-Mexico Agreement (CUSMA). The tariffs were implemented on April 9, 2025, with a stated duration until the U.S. removes its auto tariffs against Canada.