Canada's Department of Finance officially confirmed on Tuesday that the country will impose 25% tariffs on certain automobile imports from the United States, with the duties set to take effect at 12:01 a.m. EDT on April 9. The announcement reaffirms measures previously signaled by the government last week, following escalating trade tensions between the two nations.

According to the government’s statement, the counter-duties are a direct response to what it described as “unjustified” levies imposed by the United States on Canadian goods. The Canadian tariffs will apply to non-CUSMA-compliant, fully assembled vehicles imported from the US, as well as to the non-Canadian and non-Mexican content of CUSMA-compliant vehicles built in the United States.

The new tariff structure effectively targets U.S. automobiles that do not fully meet the terms of the Canada-United States-Mexico Agreement (CUSMA), especially those relying heavily on parts or production outside North America. The move is expected to impact a significant portion of the US auto exports to Canada.

In tandem with the announcement, the Canadian government revealed plans to introduce a remission framework designed to support the country’s domestic automotive industry. The goal is to stimulate Canadian production capacity and provide incentives for global car manufacturers to invest in Canadian operations. Specific details of the framework are expected to be released soon.

Ottawa’s decision underscores Canada’s strategic approach to safeguarding its manufacturing sector while reinforcing its commitment to fair trade practices under the existing North American trade pact. The Canadian auto industry, a vital pillar of the nation’s economy, is expected to benefit from the protections and incentives resulting from the tariffs and upcoming policy measures.

As the effective date nears, both Canadian and American automakers will be closely watching for the full implementation guidelines and potential exemptions. The impact on cross-border trade, consumer pricing, and auto supply chains could be significant, depending on how long the tariffs remain in place and whether further negotiations between Ottawa and Washington alter the current course.