Canada set to impose new counter-tariffs on US vehicles starting at midnight

Canada's prime minister announced Tuesday that the country will begin enforcing new counter-tariffs within hours in response to US trade actions.

"At 12:01 EDT (0400GMT) tonight, Canada's counter-tariffs will come into force," Mark Carney said on his X account, adding that "there will be 25% tariffs on all non-CUSMA-compliant vehicles from the U.S., and 25% tariffs on the contents of CUSMA-compliant vehicles that are not from Canada or Mexico," referring to the Canada-United States-Mexico Agreement reached during Donald Trump's first term as US president.

Carney stressed that this move comes in direct response to Trump's actions, adding: "President Trump caused this trade crisis-and Canada is responding with purpose and with force."

The tariffs come after months of escalating trade tensions between the two countries, with Canada seeking to protect its domestic industries and ensure fair trade under the CUSMA deal, which was reached in 2018 and updated in 2019.

Vehicles under CUSMA can avoid the 25% tariffs as long as the vehicle is fully assembled in the US with parts originating in the US. The tariffs apply to the portion of the vehicle that is of foreign origin.