Canada will match President Trump’s auto tariffs with 25% tariffs of its own on U.S. vehicles that are not compliant with the U.S.-Mexico-Canada trade pact, Prime Minister Mark Carney said on Thursday.

Prime Minister Mark Carney responded to Trump's tariffs and announced 25% tariffs on all U.S. vehicles not compliant with the United States-Mexico-Canada Agreement.

In a response best described as measured, (interim) Prime Minister Mark Carney announced the Canada’s retaliation to the tariffs Donald Trump recently announced. The broad scope is more tariffs on American products that will add $8 billion to the levies already announced.

Canada will not impose retaliatory tariffs on most U.S. food and other essentials or on components essential to avoiding job loss in key sectors of the economy, the Globe and Mail reported on Tuesday citing comments by two federal trade advisers.

Experts say President Trump’s retaliatory tariff announcement is setting a new precedent for trade in North America. Juan Carlos Baker is CEO of Ansley International Consultants. “We just witnessed the most significant developments in trade policy in maybe 3 decades.

Canada's move is a direct retaliation to Donald Trump's tariff impose, Canadian PM Carney's decision further escalates trade tensions between the two nations.

Trump said in a social media post that the U.S. is "making progress to end this terrible Fentanyl Crisis" that he claims is coming from Canada, and said that "Republicans in the Senate MUST vote to keep the National Emergency in place, so we can finish the job, and end the scourge."

Long-threatened tariffs from U.S. President Donald Trump have plunged the country into trade wars abroad — all while on-again, off-again new levies continue to escalate uncertainty.