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Economy

Canada Ends Era of Close Ties With the US Amid Auto Tariffs

Friday 28 - 09:10 By: Zahouani Ilham

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Canadian Prime Minister Mark Carney declared the end of the historically close economic, security, and military relationship between Canada and the United States following the announcement of new auto tariffs by President Donald Trump.

Trump’s decision to impose a 25% tariff on vehicle imports is set to take effect next week, posing a severe threat to Canada’s auto industry, which supports approximately 500,000 jobs.

In response, Carney temporarily suspended his election campaign ahead of Canada's April 28 vote to convene an urgent cabinet meeting in Ottawa. The meeting focused on strategies to counter the escalating trade conflict with the United States.

Describing the tariffs as "unjustified" and in violation of existing trade agreements, Carney warned that Trump’s actions had fundamentally changed Canada-US relations. He emphasized that regardless of future agreements, there would be "no turning back."

"The era of deep economic, security, and military cooperation between Canada and the United States is over," he asserted, pledging retaliatory measures against the tariffs.

"Our response is to fight, protect, and build," Carney stated, outlining plans for countermeasures designed to inflict maximum impact on the US while minimizing harm to Canada.

Carney, who succeeded Justin Trudeau as prime minister on March 14, has yet to engage in direct talks with Trump. While new Canadian leaders traditionally prioritize a call with the US president, the two have not spoken. However, Carney confirmed that the White House had reached out to schedule a conversation in the coming days.

Despite expressing willingness to communicate, Carney ruled out any significant trade negotiations until Trump demonstrates "respect" for Canada’s sovereignty, particularly by ceasing annexation threats.

"For me, two conditions must be met before entering negotiations: respect for our sovereignty and a comprehensive discussion covering both economic and security matters," Carney stated.