Key points
- Trump plans 25pc levy on vehicle imports to the US
- Move could be devastating for Canadian auto industry
- Trump’s auto tariffs are “unjustified”: Carney
OTTAWA, Canada: The era of deep economic, security, and military ties between Canada and the United States “is over,” Prime Minister Mark Carney said Thursday after President Donald Trump announced steep auto tariffs.
Trump’s planned 25 per cent levy on vehicle imports to the United States is to come into force next week and could be devastating for a Canadian auto industry that supports an estimated 500,000 jobs, according to AFP.
After Trump’s announcement, Carney paused his campaign ahead of Canada’s April 28 election to return to Ottawa for a meeting of cabinet members working on tactics in the trade war with the United States.
He called Trump’s auto tariffs “unjustified,” and said they were in breach of existing trade deals between the countries.
No turning back
He also warned Canadians that Trump had permanently altered relations with the United States and that, regardless of any future trade deals, there would be “no turning back.”
“The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over,” Carney said.
President Trump’s latest tariffs are an attack on Canadian workers, families, and businesses. My government will ensure our response has maximum impact in the US and minimal impact here in Canada, while supporting the workers impacted.
My government will keep our tariffs on…
— Mark Carney (@MarkJCarney) March 11, 2025
He said Canada would retaliate against the auto tariffs.
“Our response to these latest tariffs is to fight, is to protect, is to build,” Carney said.
“We will fight the US tariffs with retaliatory trade actions of our own that will have maximum impact in the United States and minimum impacts here in Canada,” he added.
Reliable partner
“It’s clear the United States is no longer a reliable partner,” Carney said.
“I understand and respect his goal to support American workers. But I disagree with him that this is how to help them. With time, it will become apparent that these actions will end up hurting American workers and American consumers,” he said.
Carney replaced Justin Trudeau as prime minister on March 14.
Typically, a new Canadian leader makes a phone call with the US president a priority immediately after taking office but Trump and Carney have not spoken.
He said Thursday that the White House had reached out to schedule a call and that he expected to speak to Trump in the “next day or two.”
Canada’s conservative leader
Pierre Poilievre, Canada’s conservative leader, says, “The world needs our products and our expertise. If you, Mr. Trump, do not want them, the rest of the world does. If you choose to go down this road, you will lose the greatest trading partner and friend you ever had.”
He further said, “And within 4 years of a Canada First Conservative government, we will build a Canadian economic fortress that will allow us to be strong, self-reliant, stand on our own two feet, and stand up to the Americans. That is what it means to put Canada First, for a change.”
President Trump’s unjustified tariffs on our auto sector are an assault on our economy and workers.
The Americans will soon see how the pain will be felt on both sides of the border.
Canada First Conservatives will build a Canadian economic fortress to protect our affected jobs… pic.twitter.com/CvKghQ4AE1
— Pierre Poilievre (@PierrePoilievre) March 27, 2025
Canada’s respect
Carney has also said that while he is willing to talk to Trump, he will not participate in substantive trade negotiations with Washington until the president shows Canada “respect,” particularly by ending his repeated annexation threats, according to ABC News.
“For me, there are two conditions, not necessarily for a call, but a negotiation with the United States. First Respect, respect for our sovereignty as a country… apparently it’s a lot for him,” Carney said.
“There has to be a comprehensive discussion between the two of us, including with respect to our economy and our security,” he added.