TORONTO (AP) — Prime Minister Mark Carney said Thursday that Canada will match U.S. President Donald Trump’s 25% auto tariffs with a tariff on vehicles imported from the United States.

Canadian Prime Minister Mark Carney announced on Thursday his country will impose 25-percent tariffs on U.S. auto imports that do not comply with the U.S.-Mexico-Canada Agreement (USMCA) on free

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

Canada unexpectedly swung into a trade deficit in February but both exports and imports stayed at near record levels, data showed on Thursday, as businesses kept building up inventories to offset some impacts of impending tariffs.

Canada’s exports to its biggest customer, the US, as well as other countries plunged in February, as threats and implementation of the Trump administration’s tariffs started to redraw global trading flows.

Automaker Stellantis is temporarily halting production at a plant in Canada and a plant in Mexico shortly after President Donald Trump announced a 25% tariff on imported vehicles.

Stellantis is pausing production at two assembly plants in Canada and Mexico as the company attempts to navigate President Donald Trump’s new round of 25% automotive tariffs, the company confirmed Thursday.