Canada is imposing counter-tariffs that will match U.S. President Donald Trump’s tariffs on vehicles while trying to incentivize automakers to stay put and promising more aid for auto workers, Prime Minister Mark Carney said Thursday.

Carney said Canada will respond by matching the U.S. approach, with 25 per cent tariffs on all vehicles imported from the United States that are not compliant with the CUSMA free trade agreement, and on the non-Canadian content of CUSMA-compliant vehicles from the United States.

“We must respond with both purpose and force. We are a free, sovereign, and ambitious country. We are masters in our own home,” he said.

Carney, who spoke in his role as current prime minister in a caretaker government but is campaigning as Liberal leader, said Canada was preparing a framework for automakers to get relief from Canada’s counter-tariffs, “as long as they maintain their production and investment in our country.”