This article discusses Canadian Prime Minister Mark Carney‘s response to new tariffs imposed by U.S. President Donald Trump, which target imported vehicles and vehicle parts. Carney states that the long-standing relationship between Canada and the U.S., characterized by close economic ties and security cooperation, is now over, due to Trump’s tariffs. He emphasized that Canada would retaliate with its own tariffs that would aim to maximally impact” the U.S.
Carney, leader of the Liberal Party, referred to the Canada-U.S. Automotive Products Agreement of 1965 as one of the most important deals of his lifetime, noting that the tariffs effectively end that agreement.
He also outlined the need for Canada to “reimagine” its economy and retool its auto industry in response to these new trade challenges. Carney highlighted the importance of building an economy that Canadians can control, implying a need to reassess trade relationships, including with the U.S.
The U.S. tariffs, which are part of a broader trade conflict, already include a 25% tariff on Canadian steel and aluminum imports.
Canada has retaliated with tariffs on approximately C$60 billion worth of U.S. goods. The new vehicle tariffs are set to begin on April 2, 2025, with charges on vehicle imports followed by parts tariffs in May.
Read also:
– – Trump Targets Global Trade System with New Tariffs, Threatening Business Stability
- Trump’s Tariff Reversal: Canada and Mexico Get a Temporary Reprieve
- Trump Signs Executive Order to Establish U.S. Strategic Bitcoin Reserv
Trump warned that if the European Union and Canada work together to counter the U.S. in the trade dispute, they would face even harsher tariffs. Carney, who had initially planned to campaign ahead of the April 28 general election, shifted his focus to address the economic consequences of these tariffs, which he described as unjust and unprovoked.
Opposition leaders, including Conservative leader Pierre Poilievre and NDP leader Jagmeet Singh, also criticized the tariffs, with Singh accusing Trump of starting an illegal trade war. Singh further suggested that auto companies moving out of Canada due to the tariffs should be banned from selling vehicles in the country.
In parallel, Mexican President Claudia Sheinbaum has pledged to defend Mexico’s interests in the trade conflict, emphasizing that the tariffs violate the principles of the North American Free Trade Agreement (NAFTA), a deal Trump renegotiated during his first term.
This situation highlights the growing tensions in North American trade relations, especially within the automotive industry, and signals significant challenges ahead for Canada and other trading partners of the U.S.
