OTTAWA (Reuters) -Canadian Prime Minister Mark Carney announced limited counter measures against U.S. auto tariffs on Thursday, imposing a 25% tariff on vehicles imported from the United States that are not compliant with the U.S.-Mexico-Canada trade deal.

Carney, who replaced Justin Trudeau as prime minister last month, said the new tariffs would not apply to auto parts and would not affect vehicle content from Mexico. He said the tariffs collected from Canada's latest measure, estimated to be about C$8 billion before a so-called remission process for tariff relief, will go directly to auto workers and others affected.

U.S. President Donald Trump imposed 25% tariffs on goods that did not comply with the USMCA trade agreement on March 6. He then imposed tariffs on steel and aluminum imports on March 12 and a 25% import tax on autos took effect on Thursday. But he spared Canada from broader global tariffs.

Below are retaliatory measures Canada has already taken.

FIRST TRANCHE

Trudeau imposed 25% tariffs on C$30 billion ($20.92 billion) in goods imported annually from the U.S. on March 6 in response to Trump's initial duties. 

The C$30 billion was part of an overall retaliation plan to target C$155 billion worth of goods imports from the U.S., though the remaining C$125 billion has been delayed.

The first tranche of retaliation includes a list of 1,256 products such as orange juice, peanut butter, wine, spirits, beer, coffee, appliances, apparel, footwear, motorcycles, cosmetics, and pulp and paper.

In terms of value of imports associated with some of the major products, cosmetics and body care are worth C$3.5 billion, appliances and other household items are worth C$3.4 billion, pulp and paper products are worth C$3 billion and plastic products are worth C$1.8 billion.

STEEL AND ALUMINUM

Effective March 13, 2025, Canada imposed 25% tariffs on an additional C$29.8 billion worth of products imported from the U.S. They are expected to remain in place until the U.S. eliminates its steel and aluminum tariffs on Canada.

The tariffs imposed in retaliation to steel and aluminum comprise a wide variety of items such as candles, glues, umbrellas, kitchenware, gold, platinum, jewellery and more.

NON-TARIFF MEASURES

Trudeau had said Canada is also considering non-tariff retaliatory measures potentially relating to critical minerals, energy procurement and other partnerships. 

Asked on March 25 if non-tariff measures such as export controls or export taxes are on the table, Carney said they are options.

Canadian provinces have taken U.S. liquor off store shelves and Ontario Premier Doug Ford said all U.S.-based companies will be banned from taking part in government procurement.

Ontario scrapped its C$100 million contract with Trump ally Elon Musk's Starlink.

Canada has frozen all rebate payments for Musk's Tesla and banned the electric-vehicle maker from future EV rebate programs. Toronto stopped providing financial incentives for Tesla vehicles purchased as taxis or ride shares because of trade tensions with the U.S.

($1 = 1.4340 Canadian dollars)