Prime Minister Mark Carney announced that the era of deep economic, security, and military ties between Canada and the United States is over. This statement came after US President Donald Trump declared a 25 per cent tariff on vehicle imports, set to take effect next week. Trump had earlier announced a 25 per cent tariff on Canada, along with Mexico, and 10 per cent on China, which he increased to 20 per cent.
The move could severely impact the Canadian auto industry, which supports approximately 500,000 jobs. Carney, who paused his campaign for the upcoming April 28 election, returned to Ottawa to strategise with cabinet members on Canada's response to the US trade measures.
Carney described the US tariffs as unjustified and in violation of existing trade agreements. He emphasised that the relationship with the United States has been permanently altered and warned that there would be no return to former ties, regardless of future trade negotiations.
"The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over. Our response to these latest tariffs is to fight, is to protect, is to build. 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," he added. Carney said that the US is no longer a reliable partner and with negotiations some of the trust could be restored but there would be no turning back.
Carney stated that Canada would retaliate with its own trade actions designed to affect the US economy while minimising impact on Canada.
Carney, who succeeded Justin Trudeau as Prime Minister on March 14, has yet to speak with Trump but expects to do so soon. He insisted that any substantive trade negotiations with Washington would require respect for Canadian sovereignty.
"For me, there are two conditions, not necessarily for a call, but a negotiation with the United States. First Respect, respect for our sovereignty as a country... apparently it's a lot for him. There has to be comprehensive discussion between the two of us, including with respect to our economy and our security," he added.
(With agency inputs)