Canadian Prime Minister Mark Carney declared that Canada’s old relationship with the United States, “based on deepening integration of our economies and tight security and military cooperation, is over.” This stark assessment came during a press conference in Ottawa following a cabinet meeting called to address new tariffs announced by US President Donald Trump.
Trump’s New Auto Tariffs
Trump announced on Wednesday he would target imported vehicles and vehicle parts with a 25% tax, stating: “This is permanent.” The new car tariffs are set to come into effect on April 2, with charges on businesses importing vehicles starting the next day. Taxes on parts are scheduled to begin in May or later.
Canada’s Response Strategy
Carney said Canada would respond with retaliatory tariffs designed to have “maximum impact” on the US while minimizing effects on Canada. “Our response to these latest tariffs is to fight, is to protect, is to build,” Carney stated, emphasizing that Canadians must “fundamentally reimagine our economy” in the face of these challenges.
Historical Context
The Prime Minister called the original Canada-US Automotive Products Agreement signed in 1965 the most important deal in his lifetime, but stated bluntly: “That’s finished with these tariffs.” The US has already partially imposed a blanket 25% tariff on Canadian goods, along with a 25% duty on all aluminum and steel imports. Canada has retaliated with approximately C$60bn ($42bn; £32bn) of tariffs on US goods.
Future of Canada-US Relations
Carney said that while he expects to speak with Trump in the “next day or two,” he will not participate in substantive trade negotiations until the president shows Canada “respect,” particularly by ending repeated annexation threats. “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,” he explained.
Election Context
Carney, who replaced Justin Trudeau as prime minister on March 14, has switched his campaign plans ahead of the April 28 general election to confront the latest import duties. Opposition leaders have also weighed in, with Conservative leader Pierre Poilievre calling the tariffs “unjustified and unprovoked” and NDP leader Jagmeet Singh describing them as a “betrayal” against a close ally.