Latest news with #Canada-USAutomotiveProductsAgreement
Yahoo
28-03-2025
- Automotive
- Yahoo
Trump and Carney hold first call amid ongoing trade war
US President Donald Trump says he had an "extremely productive" first call with Canadian Prime Minister Mark Carney, amid an ongoing tariff war between the two North American allies. In a Truth Social post, Trump said that the two will meet "immediately" after Canada's upcoming elections on 28 April to discuss "politics, business, and all other factors". Trump's planned 25% tariffs on vehicle imports to the US is to come into effect on 2 April, which could be devastating for the Canadian car industry. On Thursday evening, Carney said the US was "no longer a reliable trading partner" and that Canada's old relationship with the US "is over". The new prime minister, who is in the midst of his electoral campaign, is yet to comment on the call with Trump. The tone of Trump's Friday morning post is starkly different from his recent comments on Canada and Canadian leaders such as Carney's predecessor, Justin Trudeau, whom he repeatedly dubbed "Governor Trudeau". Historically, Canadian leaders have made a call to their US counterpart a priority soon after becoming Prime Minister. The call between Carney and Trump, however, is the first since Carney took office on 14 March. In addition to starting a trade war with Canada over the tariffs, Trump has repeatedly called for Canada to become the 51st US state - a position that has left many Canadians angry. Carney, who leads Canada's Liberal Party, added that the vital Canada-US Automotive Products Agreement signed in 1965 is "finished" as a result of the tariffs. He also vowed to impose retaliatory tariffs with "maximum impact" on the US. Trump's proposed auto tariffs could impact as many as 500,000 jobs in the Canadian auto industry. The US has already partially imposed a blanket 25% tariff on Canadian goods, along with a 25% duty on all aluminium and steel imports. Canada has so far retaliated with about C$60bn ($42bn; £32bn) of tariffs on US goods. The new car tariffs will come into effect on 2 April, with charges on businesses importing vehicles starting the next day, the White House said. Taxes on parts are set to start in May or later. Worsening US-Canadian relations have become a key electoral issue in Canada's general election. Pierre Poilievre, leader of the Conservatives, the main opposition party, has called the tariffs "unjustified and unprovoked", while left-wing NDP leader Jagmeet Singh referred to them as a "betrayal". Trump has also warned Canada against working with the European Union against US reciprocal tariffs that he is expected to announce soon. Any effort to do so, he said, would be met with "large scale tariffs, far larger than currently planned". Canada PM Mark Carney says old relationship with US 'is over' Defiance or diplomacy - how Canadians want to deal with Trump Trump announces 25% tariffs on car imports to US
Saudi Gazette
28-03-2025
- Automotive
- Saudi Gazette
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
