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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Yes. Canada’s 25% counter-tariff on certain U.S.-origin vehicles took effect on April 9, 2025, and the federal government’s current tariff-response page says the auto tariffs remain in place. But 25% does not necessarily apply to the entire value of every covered car: the taxable base depends in part on whether the vehicle qualifies under CUSMA.
Which vehicles are covered?
The measure covers passenger vehicles and certain trucks originating in the United States under Canada’s origin rules. A vehicle’s brand or the fact that it was assembled in the United States does not, by itself, settle how it is treated. Classification, origin and any applicable relief or exception matter.
Canada’s current tariff-response page says the counter-tariffs on automobiles remain in place. The measure was announced in response to U.S. tariffs on Canadian automobiles, which took effect on April 3, 2025.
How is the 25% tariff calculated?
| Vehicle status | Tariff base described by Canada |
|---|---|
| Does not qualify under CUSMA | 25% of the vehicle’s full value |
| Qualifies under CUSMA | 25% on its non-Canadian and non-Mexican content |
That distinction is why “25% tariff on U.S.-made cars” is useful shorthand but not a complete calculation for every vehicle. The Canadian government’s description of the measure and the order’s scope are set out in the Canada Gazette order.
Do these 3 things before closing this tab:
1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsFor a specific shipment, the amount due cannot be determined from the vehicle’s make and assembly location alone. Importers need to establish the vehicle’s classification and origin, whether it meets CUSMA requirements, the applicable tariff treatment, and whether a relief or exception applies.
Can an automaker receive relief?
Canada describes a remission framework for auto producers intended to reflect and encourage production and investment in Canada. That is not an automatic exemption for consumers or individual importers. Eligibility depends on the applicable rules and the producer’s circumstances; it should not be assumed when estimating a particular import’s duty.
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Why did Canada impose the counter-tariff?
Canada announced the measure after the United States imposed tariffs on Canadian automobiles. In its announcement, Canada framed the response as reciprocal and pointed to the close integration of North American vehicle production. Parts and vehicles move across borders within that industry, so tariffs can affect manufacturers, suppliers, importers, retailers and workers—not just the final vehicle transaction.
The scale of that trade was substantial before the measures: Canada reported that in 2024 it exported $44.4 billion in passenger vehicles and trucks to the United States and imported $35.6 billion in covered vehicles from the U.S. Those figures describe trade value, not the amount of tariff collected or a forecast of vehicle-price changes. See the government’s April 2025 announcement and the Canada Gazette order.
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How the measure fits into Canada’s later tariff actions
Canada removed several other counter-tariffs on U.S. goods on September 1, 2025, while retaining measures on steel, aluminum and automobiles, according to its tariff-response page. The United States Surtax Order (2026) is a separate measure: it took effect September 8, 2026, and applies rates to goods listed in its schedules and originating in the United States, subject to exceptions. It did not replace the 2025 auto counter-tariff; Canada’s current page continues to identify the auto tariffs as in force. The separate order is available at United States Surtax Order (2026).
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the U.S. government says about trade since the tariff
In a July 2026 proclamation, the White House said U.S. motor-vehicle imports into Canada fell by approximately 22%, from about $25.9 billion to $20.3 billion, comparing April 2025–March 2026 with the preceding corresponding period. It also reported increases in imports from Mexico, Japan, South Korea and Germany over a comparison period ending in February 2026. These are figures and claims presented by the White House, not a neutral estimate issued by Canada; they describe import values and do not establish that the tariff alone caused the changes. The proclamation is at the White House.
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