Canada has recently implemented a 25% tariff on non-CUSMA-compliant US vehicles as a response to US auto tariffs. Prime Minister Mark Carney has emphasized that the purpose of this action is to safeguard the Canadian auto industry while assuring that it will not impact auto parts. Additionally, the Canadian government is actively engaging in legal proceedings via the World Trade Organization in order to contest the US tariffs. This decision underscores Canada's commitment to protecting its domestic automotive sector amidst ongoing trade disputes with its neighbor.