Canadian Prime Minister Mark Carney has said that the longstanding economic and security relationship between Canada and the United States has effectively ended, following Washington’s imposition of new tariffs on imported vehicles and parts.
Speaking to reporters in Ottawa after a cabinet meeting on Thursday, Mr. Carney stated that Canadians must “fundamentally reimagine” their economy in response to US President Donald Trump’s latest trade policies.
Mr. Trump announced on Wednesday that the US would impose a 25 per cent tariff on imported vehicles and vehicle parts, declaring: “This is permanent.” The new duties, set to take effect on April 2, are part of a broader trade dispute that has already seen heavy tariffs imposed on Canadian steel and aluminium exports.
Retaliatory measures
Mr. Carney, leader of the ruling Liberal Party, confirmed that Canada would introduce retaliatory tariffs designed to have a “maximum impact” on the US economy.
“The original Canada-US Automotive Products Agreement, signed in 1965, was the most important trade deal of my lifetime,” he said in French. “That agreement is now finished with these tariffs.”
He added that Canada would sustain its auto industry despite the US restrictions, provided that both the government and business community take proactive steps to “reimagine” and “retool” the sector.
He emphasised that Canada must build an economy that it can “control,” while reassessing its trade relationships with other global partners.
The Canadian government has already imposed counter-tariffs worth C$60 billion ($42bn) on American goods, a measure that is expected to be expanded in response to the latest trade restrictions.
Escalating tensions
On Thursday morning, President Trump issued a warning to Canada and the European Union against forming a trade alliance against the United States. “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 wrote on his Truth Social platform.
