Canadian Prime Minister Mark Carney has announced a retaliatory 25% tariff on U.S. vehicle imports that do not comply with the Canada-United States-Mexico Agreement (CUSMA), following President Donald Trump's imposition of similar tariffs on Canadian automobiles. Carney emphasised that the revenue from these tariffs will be directed toward supporting Canadian auto workers and the industry. 

Additionally, vehicles compliant with CUSMA will face a 25% tariff on non-Canadian and non-Mexican content, while auto parts remain exempt to preserve supply chain benefits.

Carney criticized Trump's trade policies as "unjust" and warned of their disruptive impact on the global economy. He stated that Canada would take decisive measures to protect its workers and businesses, including developing incentives for local production and investment in the auto sector.

This announcement follows escalating trade tensions, with Trump imposing sweeping tariffs across multiple countries, including 25% on Canadian automobiles and plans to extend them to auto parts by May 3.

The broader trade conflict has led to significant market disruptions globally. U.S. markets experienced a downturn after Trump's tariff announcement, with stocks tumbling amid fears of economic instability. 

The Canadian government has pledged to stand firm against these measures, underscoring its commitment to defending national interests and supporting affected industries.

ANI