In a dramatic shift in Canada-U.S. relations, Prime Minister Mark Carney declared that the longstanding economic partnership with the United States is “over” as his government prepares to counter a new wave of tariffs imposed by U.S. President Donald Trump.
Carney, speaking after a high-level cabinet meeting on Canada-U.S. relations, vowed to retaliate against the tariffs, eliminate domestic trade barriers, and accelerate efforts to reduce Canada’s reliance on the American market. The announcement follows Trump’s decision to impose sweeping auto tariffs set to take effect next week.
A New Economic Vision
“The old relationship we had with the United States, built on economic integration and security cooperation, no longer exists,” Carney said. “In the coming months and years, we must fundamentally reimagine our economy to ensure Canada’s sovereignty and economic resilience.”
While Carney did not reveal specific countermeasures, he confirmed that retaliatory actions would be announced on April 2, coinciding with the implementation of Trump’s new tariffs on foreign-made cars and light trucks. Additional tariffs targeting global imports, including Canadian goods, are also expected to take effect that day.
Carney acknowledged that he has yet to speak directly with Trump since taking office earlier this month but confirmed that a conversation is planned in the coming days.
“I will make it clear to the president that our economic interests are best served through cooperation and mutual respect,” he said.
Economic Impact and Industry Concerns
Trump’s executive order places a 25% tariff on foreign-made automobiles and increases tariffs on steel, aluminum, and other Canadian goods. Industry leaders warn that these measures will disrupt North America’s deeply integrated auto sector, leading to job losses and supply chain chaos.
To counter the economic fallout, Carney reaffirmed his campaign pledge to establish an “All-Canadian” auto manufacturing network and a $2-billion strategic response fund aimed at insulating Canadian workers from the effects of U.S. trade policies.
“Our strategy is clear: we will reinforce our supply chains domestically, investing in steel, aluminum, and critical minerals to support Canada’s auto industry,” he stated.
Political Reactions and the Road Ahead
The tariffs and their economic impact have become a focal point in Canada’s ongoing federal election campaign. Conservative leader Pierre Poilievre called on Trump to “stop attacking America’s closest ally” and promised a targeted tariff strategy if elected.
“If Trump doesn’t want our resources, the rest of the world does,” Poilievre said, advocating for internal economic reforms and diversified trade partnerships.
NDP leader Jagmeet Singh described Trump’s actions as a “gut punch” and expressed support for retaliatory measures. Singh proposed waiving the GST on Canadian-made vehicles to encourage domestic purchases and pledged stronger worker protections.
Despite mounting tensions, Carney remained firm in his stance against Trump’s trade war. “I take note of the president’s comments, but I do not take direction from him,” he said. “Our response to these latest tariffs is to fight, to protect, and to build.”
As Canada braces for the next phase of trade hostilities, the government’s strategy will be closely watched, with April 2 marking a crucial turning point in its economic battle against the Trump administration.
