Canadian Prime Minister Mark Carney gave a blistering speech on Thursday, declaring that the era of deep economic, security and military ties with the United States “is over,” after President Donald Trump announced steep auto tariffs of 25% on imports into the United States – which could affect an estimated 500,000 jobs in the Canadian auto industry.
“We will fight the U.S. tariffs with retaliatory trade actions of our own that will have maximum impact in the United States and minimum impacts here in Canada,” Carney said during a press conference that took him off the campaign trail ahead of the country’s April 28 general election, adding that “Nothing is off the table to defend our workers and our country.“
One option would be for Canada to impose excise duties on exports of oil, potash and other commodities – however the Canadian government says they will delay any sort of announcement until they see what the Trump administration does on April 2, Carney told reporters.
Carney called Trump’s auto tariffs “unjustified” and said they were in breach of existing trade deals, while also warning Candians that Trump had permanently altered relations to the point that regardless of any future deals, there would be “no turning back.”
Prime Minister Mark Carney says Canada “won’t back down” from President Donald Trump’s trade war and tariffs on the auto sector.
Mark Carney is the former chair of Bloomberg’s board of directors https://t.co/SYXhdGMOop pic.twitter.com/j1sPOHSy5a
— Bloomberg TV (@BloombergTV) March 27, 2025
“The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over,” he said, adding that Canada’s response to the tariffs “is to fight, is to protect, is to build.”
“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,” Carney added.
Meanwhile, Ontario Premier Doug Ford spoke with US Commerce Secretary Howard Lutnick, and said Lutnick confirmed to him that Canada won’t be hit with an ‘immediate’ tariff, and that finished vehicles with US parts will face a rate lower than 25%. A car with US parts would instead be subject to a tariff of 12.5%.
Ford told reporters Lutnick did not give him any assurances there would be any easing or softening of the tariffs.
When Ford was asked whether Lutnick knows what Trump is planning to announce April 2, he said. “I think he has an idea.” Then the premier added: “Or maybe he doesn’t. That’s even scarier if he doesn’t. So let’s see what they come forward with on April 2, but we’re prepared, we’re ready.” –Bloomberg
“Americans need us. I told him,” said Ford of his call with Lutnick, adding that he’s “not sure” if the Trump administration fully understands the North American vehicle supply chain.
“They don’t have the people down there to fill the jobs.”
The White house, meanwhile, has reached out to schedule a call with Carney, which he says should happen in the “next day or two,” but that while he’ll talk to Trump – he will not participate in substantive trade negotiations with Washington until Trump shows Canada “respect,” which would include cutting out Trump’s repeated threats to annex Canada as America’s 51st state.
“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, adding “There has to be comprehensive discussion between the two of us, including with respect to our economy and our security.”
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Tyler Durden
Thu, 03/27/2025 – 17:20
