India, April 3 -- In a sharp response to US President Donald Trump's newly imposed 'reciprocal' tariffs, Canada on Thursday announced that it would impose a 25% tariff on some US auto imports.

Prime Minister Mark Carney confirmed that 25 per cent tariffs will be levied on all vehicles imported from the United States that are not compliant with CUSMA, reported AFP.

CUSMA is the acronym for the Canada-United States-Mexico Agreement, an existing North American free trade agreement.

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The move is a direct retaliation to Donald Trump's levies, indicating escalating trade tensions between the two nations.

Carney described Canada's retaliation as "focuse...