Canada given pass on latest U.S. tariffs while auto import hike still on the way

Canada will be spared from U.S. President Donald Trump’s impending 10 per cent tariffs on imports coming into the States, but there’s still a looming automobile tariff set to kick in at midnight.

Trump presented a lengthy list of tariff percentages that are coming for imports from countries like China, the European Union, India and others, but Canada was nowhere on the list.

Mexico was also not included despite Trump spending months putting blame for his country’s economic woes on Mexico and Canada.

Trump made no explanation for the course correction from his repeated rhetoric and claims the U.S. has to “subsidize” its closest allies and trading partners.

But Trump’s already-imposed 25 per cent tariffs on Canadian steel and aluminum are still in place on top of the pending 25 per cent auto manufacturing tariff that will kick in on Thursday.

The new auto tariff will not apply to Canadian-made vehicles with 50 per cent or more American parts, Ontario Premier Doug Ford says he was told by U.S. Commerce Secretary Howard Lutnick.

A White House fact sheet confirmed Canada and Mexico are exempt from the new tariffs. Goods imported under the existing continental trade deal will not face tariffs.

Prime Minister Mark Carney said the sweeping tariffs will fundamentally change the international trading.

“We will fight these tariffs, we are going to protect our workers and we are going to build the strongest economy in the G7,” he told reporters on Thursday.

Carney paused his federal election campaign Wednesday to take part in meetings in Ottawa with his Canada-U.S. relations council and a cabinet committee, and is set to speak Thursday with premiers.

Ontario Premier Doug Ford said the signals Wednesday from the White House were positive and reflected his efforts to press Canada’s case through meetings with Trump administration officials and American media interviews.

“This all goes back to relationships,” he said. “I’ve always believed in that in business and government, you have to build a relationship. I believe we have built it.”

Carney spoke Tuesday with Mexican President Claudia Sheinbaum. His office said it was “a productive call” that touched on Carney’s plan to increase trade between the two countries to fight Washington’s “unjustified trade actions against Canada” and blunt the impact of tariffs.

At her Wednesday morning press conference, Sheinbaum said that the two spoke about strengthening the Canada-U.S.-Mexico-Agreement on trade, negotiated during the first Trump administration.

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— Rapid Response 47 (@RapidResponse47) April 2, 2025

– With files from The Canadian Press