U.S. President Donald Trump has signed an executive order to impose a 25% tariff on all automobile imports starting next week, triggering concern and uncertainty across Canada’s auto sector. While the duties are scheduled to take effect on April 2, confusion remains about how and when they’ll apply to vehicles manufactured under the Canada-U.S.-Mexico Agreement (CUSMA), due to the deeply integrated nature of the North American auto industry.
Trump’s order includes not only fully assembled vehicles but also key auto parts such as engines, transmissions, and electrical systems. Although vehicles made under CUSMA won’t immediately face tariffs, a White House fact sheet clarified they will be taxed based on non-U.S. content once Commerce Secretary Howard Lutnick and U.S. Customs finalize implementation details.
The decision has been met with fierce criticism across Canada. Mark Carney, speaking from Kitchener, Ontario, labelled the move a “direct attack” on Canadian autoworkers and vowed swift, united retaliation. Calling the tariffs inconsistent with the CUSMA and the historic 1965 Auto Pact, Carney affirmed, “We will defend our workers. We will defend our companies. We will defend our country.”
Conservative Leader Pierre Poilievre bluntly told Trump to “knock it off,” warning that the tariffs are disrupting markets and hurting workers on both sides of the border. NDP Leader Jagmeet Singh echoed concerns, calling for Parliament to be recalled to legislate emergency financial support for impacted workers. He pointed out that Carney had already waived the usual one-week waiting period for employment insurance.
Doug Ford, Ontario’s Premier, expressed his frustration, saying he had been assured by Lutnick there would be no new tariffs after suspending Ontario’s electricity surcharges to three U.S. states. “Well, here’s the surprise,” Ford said, noting that the American administration seems unpredictable.
Ford has now requested an urgent first ministers meeting with Carney to coordinate a national response and support retaliatory tariffs. “Tariff for tariff,” Ford said, adding that Canada must not “roll over” but instead “fight like we’ve never fought before.” He also emphasized the need to inflict economic consequences on the U.S. while protecting Canadians.
Unifor National President Lana Payne condemned Trump’s action as an assault on Canadian jobs, stating, “These are not Donald Trump’s jobs to steal. They are Canadian jobs.” Dave McDowell, president of Unifor Local 1859 and a worker at THK Rhythm Automotive in St. Catharines, said uncertainty is growing, and production has already slowed slightly as companies wait for clarity.
Meanwhile, Toronto has responded with a local strategy. Mayor Olivia Chow’s “action plan” to support Toronto businesses was approved by city council. The 10-point plan includes strengthening local supply chains, deferring industrial property taxes for six months, and reducing dependence on U.S.-based products and services in procurement.
Chow urged residents to rally behind Canadian-made goods, stating, “Like SARS, the 2008 financial crisis, and the COVID-19 pandemic, we will face this crisis and emerge stronger and more resilient than ever before.”
Trump’s aggressive trade stance has now become a dominant issue in the ongoing Canadian federal election campaign. His earlier threats of annexation and recent economy-wide tariffs—some linked controversially to fentanyl trade—have only intensified public and political backlash north of the border.
