The Prime Minister has introduced what he’s calling “carefully calibrated and targeted” economic measures to counter U.S. President Donald Trump’s latest round of reciprocal tariffs.

Mark Carney says Canada will respond to U.S. auto tariffs with a 25 per cent tariff on all vehicles imported to Canada from the United States that are not compliant with the CUSMA North American Free Trade Agreement.

The tariffs will not affect auto parts, and will not affect vehicle parts from Mexico which is respecting the CUSMA agreement.

Carney says the federal government is also developing a framework for auto producers in Canada to get relief from counter-tariffs as long as production and investment remains in this country.

“Every single dollar raised from our counter tariffs, which could reach around $8 billion before remission, will go directly to our auto workers and the companies affected by those tariffs.”