Canada PM declares end of 'old relationship' with US amid tariff dispute
TORONTO — Canadian Prime Minister Mark Carney declared that the era of deep economic and military integration with the United States is over, following sweeping new tariffs announced by US President Donald Trump.
Speaking after a cabinet meeting in Ottawa on Thursday, Carney said Canada must "fundamentally reimagine our economy" and pursue retaliatory trade action designed to have "maximum impact" on the US.
"The old relationship — based on deepening integration of our economies and tight security and military cooperation — is over," Carney said.
He described Trump's latest 25% tariff on imported vehicles and parts as a permanent rupture in North American trade relations.
'That's finished with these tariffs,' he added, referring to the historic 1965 Canada-US Automotive Products Agreement.
Carney, leader of the Liberal Party, pledged Canada would respond forcefully and called for a rethinking of trade partnerships, stating the country can still sustain its auto industry with the right support and vision.
The US tariffs, set to take effect on April 2 for vehicles and later for parts, follow existing duties on Canadian steel and aluminum. Canada has already imposed C$60 billion (US$42 billion) in retaliatory tariffs, and more are expected in response to the car levies.
Trump warned both Canada and the European Union against forming an alliance to challenge US tariffs, threatening even harsher duties if they coordinated economic retaliation.
Carney revealed that Trump had requested a phone call, expected to take place within the next two days. If held, it would be the first direct conversation between the two leaders since Carney's appointment.
Meanwhile, opposition leaders in Canada condemned the tariffs. Conservative leader Pierre Poilievre called them 'unjustified and unprovoked,' while NDP leader Jagmeet Singh labeled them a 'betrayal' and an 'illegal trade war.' Singh also said any auto company that abandons Canadian operations due to tariffs should be barred from selling vehicles in the country.
The escalating trade tension comes just weeks before Canada heads to the polls on April 28, with the auto industry — especially in Ontario — likely to be a key election issue.
The US imported roughly eight million vehicles last year, with Canada ranking among its top five suppliers, behind Mexico, South Korea, and Japan.
Mexico's President Claudia Sheinbaum responded cautiously, promising an 'integral response' to the tariffs by April 3. She emphasized that the US-Mexico-Canada Agreement, which Trump renegotiated during his first term, was founded on the principle of free trade. 'Of course, there shouldn't be tariffs,' she said. — Agencies
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