Canadian Prime Minister Mark Carney has declared that the country’s old relationship with the United States is “over” due to the deepening economic and military integration that has been severely impacted by US President Donald Trump’s tariffs ¹. Speaking to reporters in Ottawa, Carney emphasized that Canadians must “fundamentally reimagine our economy” to navigate this new reality.
The tariffs imposed by Trump, which include a 25% tax on imported vehicles and vehicle parts, have been met with strong opposition from Canada. Carney has vowed to respond with retaliatory tariffs that will have “maximum impact” on the US. This move is part of a broader strategy to protect Canada’s economy and auto industry, which is heavily reliant on trade with the US.
Carney has also called for a rethinking of Canada’s trade relationships with other partners, emphasizing the need to build an economy that Canadians can control. This includes re-examining the country’s trade agreements and exploring new opportunities for growth and cooperation.
The impact of the tariffs on the auto industry is significant, with the US importing around eight million cars last year, accounting for approximately $240 billion in trade. Canada has already retaliated with around C$60 billion ($42 billion; £32 billion) of tariffs on US goods, and the new car tariffs are set to come into effect on April 2.
In addition to the economic implications, the tariffs have also strained relationships between the two countries. Carney has been critical of Trump’s actions, and Mexican President Claudia Sheinbaum has also spoken out against the tariffs, emphasizing the need to defend Mexico’s interests and maintain job creation.
The situation remains fluid, with Canada and Mexico set to respond to the tariffs in the coming days. Carney has switched his campaign plans ahead of next month’s general election to confront the latest import duties, and the outcome of this trade dispute will have significant implications for the future of Canada-US relations.
