Learn Electric Cars

Canada Imposes Tariffs on US Cars

Canada Responds With 25% Tariffs On U.S. Cars And More

It’s raining tariffs at the moment as the new U.S. President Donald Trump assumes office

After U.S. President Donald Trump announced tariffs on Canadian goods last week, Canada retaliated with its own 25% tariffs on U.S. cars (all imports). This tariff war has caused fresh trade tensions in North America. Note that some of these import duties take effect from today itself, while we will still have to wait until February 18 for these tariffs to affect vehicles.

Donal Trump Announced 25% Tariffs on Canadian Imports
Donal Trump Announced 25% Tariffs on Canadian Imports

You might also like: 100% Tariffs On China-Made EVs Delay Volvo EX30 For U.S.

Canada Imposes 25% Tariffs On U.S. Cars

To hear the message directly from Canada, this X post from Prime Minister Justin Trudeau encapsulates the details of the tariffs as well as its consequences. Furthermore, the Canadian government released a statement iterating, “Canada will not stand by as the United States imposes unjustified and unreasonable tariffs on Canadian goods. In response, we are moving forward with 25 per cent tariffs on $155 billion worth of imported U.S. products. We will protect Canadian interests and support our workers and industries.

What is quite fascinating is that during his first term, Donald Trump signed the existing U.S.-Mexico-Canada trade agreement (USMCA). However, he now claims that these tariffs are a result of the bordering nation’s lack of action against drug trafficking into the U.S. In response to this accusation, Canada remarked that “Less than 1 per cent of the fentanyl and illegal crossings into the United States come from Canada.”

Another thing that we must understand is that from today, i.e., February 4, 2025, the tariffs on things like motorcycles, whiskey, apparel, juices, etc. have been implemented. In the next leg, i.e. February 18, 2025, these will be enforced on cars, steel, aerospace products, aluminium and many more items. Now, these tariffs will make EVs even more expensive for Canadians in the coming weeks. That could prove to be detrimental to EV mass adoption.

You might also like: Canada Could Follow U.S. With New Tariffs On Chinese EVs

Learn Electric Cars Says

The EV demand was already quite inconsistent all throughout last year. In fact, because of that, many carmakers re-assessed their plans for complete electrification and even allowed some ICE models to continue to remain in production past the previous deadlines. Amidst all this, if EV prices rise, this could potentially hamper all the sales in both countries. Let us keep an eye out for further developments in this case in times to come.