OTTAWA (TIP): In a dramatic shift in Canada’s foreign policy, Prime Minister Mark Carney declared on Thursday that the long-standing economic and security relationship between Canada and the United States has come to an end. This statement followed US President Donald Trump’s announcement of new auto tariffs that could severely impact Canada’s economy, Politico reported.
“The old relationship we had with the United States, based on deepening economic integration and tight security and military cooperation, is over,” Carney said on Parliament Hill after breaking from his federal campaign trail to respond to Trump’s latest threats.
Trump announced on Wednesday that his administration would impose a 25% tariff on auto imports from Canada, the European Union, Japan, and South Korea. He also threatened to introduce additional tariffs targeting other major US trading partners.
In response, Carney said he would speak with Trump in the coming days but emphasised that any discussions must respect Canada’s sovereignty. “We must fundamentally reimagine our economy. We need to ensure that Canada can succeed in a drastically different world,” he said.
Carney convened his Cabinet’s committee on Canada-US relations upon returning to Ottawa. Canada has indicated it is prepared to retaliate, but the government has not revealed specific countermeasures. “We are facing a comprehensive and broad negotiation,” Carney said, adding that he would not disclose Canada’s response strategy prematurely.
Flavio Volpe, president of the Automotive Parts Manufacturers Association of Canada, warned that if the tariffs go forward, both countries’ auto industries could be paralyzed within a week.
“One day, two days, three days where you hope the president shows you mercy. You’re a publicly traded company whose share price is taking a beating, and you have a fiduciary obligation to shareholders,” Volpe told Politico.
Ontario Premier Doug Ford spoke with US Commerce Secretary Howard Lutnick on Wednesday about the potential impact on his province.
According to Ford, Lutnick explained that tariffs on vehicles from Canada and Mexico would be adjusted based on US content. For example, if a car built in Mexico contains 50% American parts, the tariff rate would be reduced to 12.5%, rather than the full 25%.
“He’s reassuring us that there’ll be no plant closures. My response was Ronald Reagan’s response: Trust but verify,” Ford said. “If they’re opening or closing, it’s going to be up to the CEOs.”
Ford also confirmed that he spoke with Carney and both agreed that Canada would fully retaliate if necessary. Ottawa has previously stated it could impose up to CAD 155 billion in counter-tariffs on US goods.
Trump responded on Truth Social early Thursday, warning that if Canada and the EU coordinated against the tariffs, the US would introduce even harsher trade measures. “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 in order to protect the best friend that each of those two countries has ever had!” Trump wrote. (ANI)