'Old US-Canada relationship over': PM Carney after Trump's auto tariff
What's the story
Canadian Prime Minister Mark Carney has declared a major new direction for his country's relationship with the United States. The announcement came in the wake of US President Donald Trump announcing a 25% tariff on vehicle imports to the US, including Canadian-made cars, which Carney called a "direct attack" on Canada's economy. "The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over," Carney said.
Retaliatory measures
Carney's vow to protect Canadian workers
The Canadian leader vowed reprisal and a new focus on reducing dependence on its neighbor. "We will fight the US tariffs with retaliatory trade actions of our own that will have maximum impact in the United States and minimum impacts here in Canada," Carney said. The PM also reiterated that there's "no silver bullet" or "quick fix" in a trade war, stressing on the intricacy of such economic conflicts.
Diplomatic dialogue
Carney's upcoming conversation with Trump
Carney also confirmed he and Trump are scheduled to speak over the phone in the next few days. "We will be speaking soon, certainly in the course of the next day or two," Carney said, adding Trump has to respect Canada's sovereignty. "That's not much to ask, but apparently it's a lot for him," he said. The Canadian PM said the White House contacted him to schedule the call.
Economic independence
Carney's call for Canada to reassess ties
Though Carney has no plans to visit Washington himself, he said it is "possible" members of his cabinet would travel there. Speaking to reporters after a cabinet meeting, the Liberal leader described the original Canada-US Automotive Products Agreement, signed in 1965, as the most important deal, which is "finished with these tariffs." But Canada can keep its car industry afloat despite US tariffs if the government and business community work together to "reimagine" and "retool" it, he added.
Trump
This is permanent: Trump
Trump announced on Wednesday that he will impose a 25% tax on imported autos and vehicle parts, declaring, "This is permanent." The United States has already placed a blanket 25% tax on Canadian exports, as well as a 25% duty on all aluminum and steel imports. The new car tariffs will go into force on April 2, with charges on businesses that import vehicles beginning the next day, according to the White House.