U.S. President Donald Trump has announced he's implementing a 25-per cent tariff on foreign-made cars and light trucks.
At a press conference in the Oval Office Wednesday, Trump said it's part of a plan to spur "tremendous growth in the automobile industry."
Speaking to reporters, Trump said the tariff will take effect on April 2.
He said the tariff will not apply to parts of cars made in America.
“If parts are made in America and a car isn't, those parts are not going to be taxed or tariffed, and we'll have very strong policing as far as that's concerned,” Trump said.
“For the most part, I think it's going to lead cars to be made in one location. And right now, a car would be made here, sent to Canada, sent to Mexico, sent all over the place. It's ridiculous.”
Prime Minister Mark Carney, who is running for election as leader of the Liberal party, said that Trump was breaking the ties that bind Canada and the U.S.
“This will hurt us,” he said, speaking at a press conference alongside Unifor National President Lana Payne shortly after Trump’s announcement. “But through this period, by being together, we will emerge stronger.”
He called the tariff a “direct attack” on Canada’s workers.
The government has put measures in place to support businesses and workers and has announced retaliatory tariffs — with more retaliatory trade measures on the table to be discussed Thursday, said Carney.
At Queen’s Park, Ontario Premier Doug Ford slammed the move and promised retaliation.
“We just aren’t going to roll over,” Ford told reporters at the Ontario legislature, shortly after Trump’s announcement. “We’re going to retaliate, and (the president) is going to feel the pain from the American people.”
Ontario’s premier said the U.S. president’s move came by surprise, despite assurances Ford said he received a couple of weeks ago from American officials that there would be “no surprises.”
By the time he spoke with reporters early Wednesday evening, Ford had already discussed the situation with Carney. Ford said he’s asked Carney to convene a meeting of Canada’s premiers to discuss how, exactly, they respond and “maximize the pain for Americans.”
“I feel terrible for the Americans,” he added. “But it’s one person — that’s President Trump — that’s creating this chaos.”
Ford didn’t say on Wednesday whether his government would bring back its short-lived 25 per cent surcharge on electricity Ontario exports to three border states. “Ontario is the largest province. We’ll get hit the hardest (and) I want to protect the jobs and protect the people and communities and businesses here in Ontario, but I also have to take into consideration retaliating that’s going to hurt the rest of the country,” the premier said.
Ford said that he expects the federal government to have economic stimulus ready by April 2, despite a federal election being underway. As for his provincial government, Ford said it’ll plan funding support for sectors “hit hardest.” Trump had also threatened tariffs on other goods, including lumber and pharmaceuticals specifically on Wednesday.
President Trump is at it again.
— Doug Ford (@fordnation) March 26, 2025
His 25 per cent tariffs on cars and light trucks will do nothing more than increase costs for hard-working American families. U.S. markets are already on the decline as the president causes more chaos and uncertainty. He’s putting American jobs at…
The federal leaders weighed in on tariffs from the campaign trail.
Earlier in the day, Carney promised to set up a $2-billion fund aimed at boosting the domestic auto sector’s competitiveness in the face of U.S. tariffs.
He rolled out his plan in Windsor alongside unionized workers, with the Ambassador Bridge, which connects Detroit and Windsor, behind him. Promising to maximize the use of Canadian steel and aluminum in battery production and other auto processes, he said the government must work on ways to “insulate” workers from the president’s plans.
Conservative Party of Canada Leader Pierre Poilievre said his message to Trump is to “knock it off.”
“These tariffs are simply causing chaos in markets, they’re dislocating workers on both sides of the border,” Poilievre told reporters in Quebec.
“Our two countries have been two wonderful friends over centuries, and it is better to build on the Canada-U.S. friendship as two separate and sovereign countries.”
"Now is not a time for weakness," he said in Quebec City after Trump's announcement. "Now is not a time to continue on with the failures that got us into this place of dependency. Now is the time to take back control and relaunch our economy so that we can confront the president's unjustified threats and tariffs in a position of strength. We will do this for our people, for our land, for our home, for Canada first — for a change."
Meanwhile, NDP Leader Jagmeet Singh responded to Trump’s announcement while campaigning in London, Ont., and said Canada has to fight back to end this “full-frontal attack on auto workers” and step up to better protect Canadian workers.
You can watch the White House feed of Trump's announcement below.
