Canada has imposed retaliatory 25 per cent tariffs on vehicles imported from the United States, a move Unifor says is both necessary and justified as tensions escalate over cross-border auto trade.
The counter-tariffs, which took effect Thursday, apply to fully-assembled vehicles imported into Canada from the U.S. that do not meet requirements under the Canada-United States-Mexico Agreement (CUSMA). Vehicles compliant with CUSMA will only be taxed on content not originating in Canada or Mexico. The measure does not extend to U.S. auto parts brought into Canada for manufacturing.
“There is absolutely no justification for the United States to impose tariffs on Canadian vehicles,” Unifor national president Lana Payne said in a statement. “Canada did not start this trade war, but we have no choice but to fight. We refuse to back down and sacrifice Canada's auto jobs and industry on Donald Trump's altar.”
Payne said the federal government has committed to directing all revenue generated by the new tariff toward support for auto workers affected by the trade dispute.
“Canada’s response is aggressive but also designed to limit damage to Canadian jobs and our auto sector,” she added.
The U.S. imposed its own 25 per cent tariff on Canadian-made vehicles earlier this week, prompting immediate concern across the North American industry. Automaker Stellantis responded by temporarily shutting down plants in Canada, Mexico and the United States, leading to thousands of layoffs, including ripple effects across the supply chain.
The U.S. measures, which Unifor says clearly violate the terms of the CUSMA trade agreement, also include a 25 per cent tariff on Canadian steel and aluminum and a planned hike to 34.45 per cent on duties for Canadian softwood lumber. Additional tariffs of 25 per cent on certain Canadian goods and 10 per cent on energy and potash have also been imposed on products deemed non-compliant with CUSMA.
“Unifor will fight to ensure that our members in auto, steel, aluminum, forestry, energy, mining, and any other sector injured by these senseless economic attacks is supported until the last unjust U.S. tariff is lifted,” Payne said.
The union says it is awaiting further details on the federal government's promised remission framework, which is expected to offer incentives to automakers to retain and grow Canadian jobs despite mounting trade challenges.
Unifor represents more than 320,000 workers in the private sector across multiple industries and is Canada’s largest private-sector union.