U.S. tariff response

Effective April 3, the President of the United States, Donald Trump, imposed a 25 per cent tariff on all imported automobiles, including those from Canada. In response, effective April 9, Canada implemented a 25 per cent tariff on:

• U.S. vehicle imports that do not comply with the Canada-United States-Mexico Agreement (CUSMA); and
• the non-Canadian and non-Mexican content of vehicles that do comply with CUSMA. 

These actions follow earlier measures:

• On March 4, 2025, President Trump implemented a 25 per cent tariff on all Canadian goods and a 10 per cent tariff on Canadian energy resources. In response, effective March 4, Canada imposed retaliatory 25 per cent tariffs on $30 billion in U.S. goods imports for a range of mostly consumer and food products.
• On March 7, 2025, a partial pause was implemented for tariffs on Canadian goods that fall under the CUSMA preferential rate.
• On March 12, 2025, an additional 25 per cent tariff on U.S. imports of steel and aluminum products from several countries, including Canada, took effect. Effective March 13, Canada responded with 25 per cent reciprocal tariffs on U.S. steel and aluminum products, as well as tools, computers and servers, display monitors, sport equipment and cast-iron products. 

The Government of Yukon has expressed disappointment over the harm these tariffs will inflict on both sides of the border. 

View the Phase 2 response to U.S. tariffs.

Tariffs are taxes on imported goods coming from another country. Companies in the United States that import Canadian goods must pay these taxes. Those companies typically pass their higher costs on to their customers through higher prices. This makes Canadian products more expensive and harder to sell in the U.S. as customers look for cheaper alternatives. 

Canada and the United States have a long history as neighbours, allies and trading partners. Our economies are closely interconnected. Tariffs would cause significant harm to both the U.S. and Canadian economies, raising costs and putting millions of jobs at risk that rely on the free movement of goods across the border. 

In 2023, Yukon-U.S. trade totalled over $150 million. Nearly all of the Yukon’s international exports travel to or through the United States. Alaska is the Yukon’s largest international trading partner and makes up 85 to 95 per cent of the Yukon’s annual U.S. trade. Yukoners and Yukon businesses also buy many American goods, either directly or through Canadian distributors. These tariffs put these strong cross-boarder trade relationships at risk.  

The Government of Yukon is committed to protecting our economic stability and control over our own future. We will not remove any retaliatory actions until the U.S. administration removes all tariffs and the threat of tariffs. 

The Yukon has never backed down in the face of hardship and we’re not starting now. That’s why we’re acting against these unjustified tariffs. In response to ongoing U.S. tariffs, and as part of the broader Team Canada approach, the Government of Yukon has initiated several non-tariff measures and complementary initiatives: 

Reducing internal trade barriers

The Government of Yukon is reducing our exceptions under the Canadian Free Trade Agreement (CFTA), a national agreement that makes it easier to do business across provinces and territories. Effective July 8, 2025, we're removing 5 of our exceptions:

• Business Incentive Policy: The Yukon will no longer apply preferential rebates for local businesses in procurements.
• Real estate agent residency requirement: Real estate agents are no longer required to have lived in the Yukon for 3 months to be eligible for a licence.
• We're giving up our option to restrict other jurisdictions' market access to the fisheries sector, forestry activities (excluding processing) and logging products, agricultural land and forest and grazing resources.
  • Access to these markets is still subject to existing regulations and processes.

We continue to work with our federal, provincial and territorial partners to reduce further trade barriers within Canada. These removals do not affect the Yukon First Nations Procurement Policy. They also do not impact commitments under the Umbrella Final Agreements or other measures to help ensure that Yukon First Nations benefit from trade to and from the territory, and any economic activity on Yukon First Nation's Traditional Territories.

Ending sales and new purchases of U.S.-made alcohol

The Yukon Liquor Corporation has stopped ordering U.S.-made alcohol and removed existing U.S.-made products from all Government of Yukon liquor stores.

Limiting U.S. access to government procurement

The Department of Highways and Public Works is updating procurement policies to encourage purchasing goods and services from local and non-U.S. businesses and reduce government purchases from U.S. suppliers.

Ending rebates on Tesla products

Rebates through the Good Energy program are no longer available for Tesla vehicles or Tesla Level 2 chargers. Incentives will remain in place for other zero-emission vehicle manufacturers to help Yukoners make the switch to cleaner transportation.

Shifting digital communications away from X

We no longer have any active X accounts. The final posts on our X accounts direct Yukoners to where they can find the same information. We'll continue to share updates through Yukon.ca, Facebook, Bluesky and local advertising.

Reviewing Government of Yukon’s contracts with Starlink

The Government of Yukon is reviewing all government Starlink accounts. Accounts that are not essential for emergency response or business continuity will be cancelled. You may still see Starlink used in specific cases where it remains necessary.

Mitigating impacts on Yukon businesses

The Yukon government allocated $1 million in preparation to help Yukon businesses adapt to the economic uncertainties caused by these tariffs.

Promoting local businesses

The Yukon government is supporting local chambers of commerce in promoting their campaigns encouraging Yukoners to buy and support local.

The Yukon government added several local suppliers and Yukon-based agriculture producers to the Government of Yukon’s new Online Marketplace, which makes it easier for the Yukon government to purchase directly from local companies.

The Government of Yukon is preparing additional responses should the U.S. maintain these tariffs, demonstrating a commitment to protecting local businesses, industries and workers.

If the U.S. takes more actions, we are ready to respond and will keep Yukoners updated as things progress. 

We‘re working closely with federal, provincial and territorial leaders and local governments to protect Yukon businesses, industries, workers and families. 

Yukoners are strong and adaptable. By working together, we will secure a strong and stable future for generations to come.

Your voice matters. Tariffs affect Yukoners in different ways and we welcome your feedback. Tell us how tariffs have impacted you and share your thoughts on the Government of Yukon’s response. Your input will help shape our understanding of these challenges. Email your feedback to [email protected].