Ottawa, March 27, 2025: Canadian Prime Minister Mark Carney has strongly criticized U.S. President Donald Trump’s latest move to impose a 25% tariff on all auto imports, calling it a “direct attack” on Canada. The tariffs, which also apply to spare and ancillary components, were announced as a “permanent” measure by Trump on Wednesday.
Carney, who was in the middle of an election campaign, cut his trip short and returned to Ottawa to chair an emergency Cabinet meeting on U.S.-Canada relations. He assured Canadian auto workers that the government would take steps to protect them, including a $2 billion (CAD) strategic response fund to support the industry.
“We will defend our workers, our companies, and our country,” Carney declared. However, he stopped short of announcing immediate retaliatory measures, saying, “We need to see the details of Donald Trump’s executive order before responding.”
Economic Fallout and Industry Concerns
The automobile industry is Canada’s second-largest export sector, employing over 125,000 people directly and 500,000 in allied industries. The new tariffs threaten to disrupt the sector, forcing automakers to increase prices and possibly shut down plants.
Ontario Premier Doug Ford, whose province is home to a major share of Canada’s auto industry, warned that the tariffs could lead to simultaneous factory shutdowns on both sides of the border. “President Trump is calling it Liberation Day. I call it Termination Day for American workers. I know he likes to say ‘You’re fired!’ but I didn’t think he meant U.S. auto workers,” Ford remarked.
Carney accused Trump of escalating a global trade war, arguing that the tariffs are also harming American consumers and businesses. He pointed to a recent 7.2-point drop in the U.S. consumer confidence index, which hit its lowest level since January 2021.
Strained US-Canada Relations
The tariffs on automobiles follow previous 25% tariffs on Canadian steel and aluminum. Trump has also threatened additional levies on all Canadian imports starting April 2.
“He wants to break us so America can own us,” Carney said, adding, “That will never happen. The relationship between Canada and the United States has changed. We did not change it.”
Trump has repeatedly referred to the Canadian Prime Minister as a “Governor” and has openly discussed the idea of annexing Canada as the “51st state” of the United States. While initially dismissed as a joke, Canadian officials now see it as a serious shift in U.S. foreign policy under Trump’s administration.
