Poilievre Pledges to Remove GST on ‘Canadian-Made’ Cars Amid US Trade Dispute

Conservative Leader Pierre Poilievre speaks during a news conference in Ottawa on March 2, 2025. The Canadian Press/Spencer Colby

Conservative Leader Pierre Poilievre pledged measures to support the Canadian auto industry after U.S. tariffs came into force, including removing the GST on cars assembled in Canada and creating a fund to support affected businesses.

Poilievre said on April 3 the GST measure would remain in place as long as U.S. tariffs are imposed and he encouraged provincial premiers to drop their sales tax on new vehicles in addition.

“By saving cash-strapped Canadian families their hard-earned money, we will increase demand for Canadian-made cars and keep more workers on the job,” Poilievre said during an event in Kingston, Ont.

Poilievre said consumers could see a drop in price of up to $7,000 on a $50,000 vehicle if Ottawa and the provinces temporarily remove their sales tax.

The Tory leader’s announcement came on the same day the 25 percent U.S. tariffs on foreign automobiles and auto parts came into force. For vehicles covered under the United States-Mexico-Canada free trade deal (USMCA), only the non-U.S. content is being tariffed.

The Canadian and U.S. auto industries are deeply integrated, with parts crossing over the border multiple times before a vehicle comes off the assembly line.

Only a limited number of car makes and models are assembled in Canada, but some of these are among the most popular, including the Toyota RAV-4, and the Honda Civic and CR-V. U.S. car companies also assemble vehicles in Canada, including the Chevy Silverado, the Chrysler Pacifica, and the Dodge Charger.

Along with proposing to remove the GST on new vehicles sales, Poilievre said he would establish a $3 billion “Keep Canadians Working Fund” to support businesses affected by tariffs. This would involve offering short-term credit lines and low-interest loans to maintain operations and avoid job losses.

Liberal Leader Mark Carney also pledged last week that a new Liberal government would launch a $2 billion fund to help the auto sector.

Impacts from the U.S. tariffs are already being felt in the Canadian car industry. Unifor Local 444 told its members this week Stellantis will close its Windsor Assembly Plant for two weeks starting April 7, with a “primary driver” being the U.S. tariffs.

Prime Minister Carney said on April 3 Canada will be matching the U.S. tariffs by imposing a 25 percent duty on vehicles imported from the United States. The tariffs will apply to vehicles not compliant with the USMCA free trade deal and to the non-Canadian content in USMCA-compliant vehicles.

The day prior, U.S. President Donald Trump unveiled his “reciprocal” tariffs plan for global trading partners, with countries being hit with different rates depending on factors such as their tariff rates on the United States, non-tariff trade barriers, and currency manipulation.

Canada was spared, but only because it’s already being affected by previously imposed tariffs related to Trump’s border security concerns. Those tariffs impose a 25 percent duty on Canadian goods and 10 percent on energy exports and potash not covered by the USMCA.

“The system of global trade anchored on the United States that Canada has relied on since the end of the Second World War, a system that, while not perfect, has helped to deliver prosperity for our country for decades, is over,” Carney said during a press conference in Ottawa.

Canada is also impacted by the universal 25 percent U.S. tariffs on steel and aluminum.

Carney and Poilievre have both said they intend to begin broad trade renegotiations with Trump soon after the election.