Prime Minister Mark Carney says Canada’s remaining counter-tariffs are in response to Washington’s sectoral tariffs on items such as Canadian auto parts, which he says violate the North American free trade agreement.
His comments came as U.S. President Donald Trump said his country would impose 50 percent tariffs on additional Canadian imports in response to Canada’s protective measures.
“These include tariffs on the Canadian auto sector, in violation of CUSMA. Canada, as is its right, has merely matched those measures.”
Canada initially responded to U.S. blanket tariffs imposed in early 2025 over concerns about cross-border fentanyl trafficking and illegal immigration with a slew of counter-tariffs of its own, but later removed most of those measures in September 2025 in an effort to reach a trade deal with Washington. However, Carney said at the time that Canada will maintain its counter-measures in kind in response to Washington’s sectoral tariffs, including those on auto parts, steel, and aluminum.
Canada has also maintained its dairy supply management, which has long been a trade irritant for Washington. As well, most provinces, including Ontario, Quebec, and B.C., have removed U.S. alcohol from provincially run liquor stores to protest U.S. tariffs.
“President Trump is taking action to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce that has burdened and disadvantaged hardworking Americans,” the White House said.
In his own statement, Carney said that, in response to U.S. tariffs and “threats to Canadian sovereignty,” Canadians have “stood together, taking the necessary actions to support our economy and defend our workers, farmers, businesses, and families.”
He added that Canada has been making a series of proposals to resolve the trade dispute between the two countries, and wants to work on negotiating CUSMA.
“We stand ready to intensify those discussions in the coming weeks,” Carney said.
CUSMA was set for renewal on July 1; however, Washington decided to not extend the agreement. This means that while the free-trade agreement, which covers the majority of trade between the countries, remains in place for another 10 years, it requires an annual review, unless any party gives notice to completely withdraw.
The Conservatives called the latest U.S. tariffs an “unacceptable and unjustified attack” on Canadian workers and businesses, asking for them to be withdrawn. The Official Opposition also criticized the government for its response to the trade dispute with the United States.
