Canadian Prime Minister Mark Carney has declared that the long-standing economic and security partnership between Canada and the United States is effectively over following Washington’s decision to impose new tariffs on imported vehicles and parts.
Speaking to reporters in Ottawa after a cabinet meeting on Thursday, Carney emphasized the need for Canadians to “fundamentally reimagine” their economy in response to U.S. President Donald Trump’s latest trade policies.
Trump announced on Wednesday that the U.S. would introduce a 25% tariff on imported vehicles and auto parts, calling it a “permanent” measure. The tariffs, set to take effect on April 2, escalate an ongoing trade dispute that has already seen steep U.S. duties on Canadian steel and aluminum exports.
Retaliatory Measures
In response, Carney confirmed that Canada would implement retaliatory tariffs targeting key sectors of the U.S. economy.
“The original Canada-U.S. Automotive Products Agreement, signed in 1965, was the most significant trade deal of my lifetime,” he said in French. “With these tariffs, that agreement is now over.”
Despite the U.S. restrictions, Carney vowed that Canada’s auto industry would endure, provided that both the government and private sector take proactive steps to modernize and diversify the economy. He stressed the importance of Canada strengthening its economic self-sufficiency while reassessing trade relationships with other global partners.
The Canadian government has already imposed C$60 billion ($42 billion USD) in counter-tariffs on U.S. goods and is expected to expand these measures in response to the latest trade barriers.
Escalating Tensions
Meanwhile, President Trump warned 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,” Trump wrote on his Truth Social platform Thursday morning.
As tensions rise, Canada’s shift towards economic independence marks a historic turning point in North American trade relations.
