Canadian Prime Minister Mark Carney has declared that the era of deep economic and security cooperation with the United States is over, following US President Donald Trump’s imposition of a 25% tariff on imported vehicles and auto parts.
Speaking in Ottawa after a cabinet meeting, Carney said Canada must “fundamentally reimagine” its economy in response to the tariffs, which he called a significant blow to North American trade. “That’s finished with these tariffs,” he said, referring to the historic Canada-US Automotive Products Agreement of 1965.
The new tariffs, set to take effect on 2 April, come amid an ongoing trade dispute that has already seen the US levy a 25% tariff on Canadian steel and aluminium. Canada has retaliated with approximately C$60bn (£32bn) in tariffs on US goods, and Carney promised additional countermeasures targeting U.S. industries.
Trump, who announced the tariffs as “permanent,” warned Canada and the EU against coordinated economic retaliation, threatening even harsher trade restrictions. “If the European Union works with Canada in order to do economic harm to the USA, large-scale tariffs, far larger than currently planned, will be placed on them both,” he posted on Truth Social.
Carney has shifted his campaign focus ahead of next month’s federal election, cancelling scheduled events in Quebec to meet with ministers and strategise trade responses. Opposition leader Jagmeet Singh of the NDP has also altered his plans, meeting auto workers in Windsor, Ontario, where he condemned the tariffs as a “betrayal” and called for a ban on companies relocating operations due to US trade policies.
Meanwhile, Mexico, the top supplier of cars to the US, has refrained from directly criticising the tariffs. President Claudia Sheinbaum stated her government would issue a formal response on 3 April, while stressing that tariffs contradict the North American free trade agreement that Trump himself renegotiated during his first term.
As tensions escalate, Carney has confirmed that Trump reached out to schedule a call, which is expected in the coming days—which would mark their first direct conversation since Carney took office.
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