TORONTO — On Wednesday, Canadian Prime Minister Mark Carney labeled U.S. President Donald Trump’s imposition of auto tariffs as a “direct attack” on Canada, emphasizing that the escalating trade conflict adversely impacts Americans by contributing to a decline in consumer confidence. The Prime Minister spoke out against the tariffs shortly after Trump announced a 25% duty on imported automobiles, declaring it a permanent measure. Carney firmly stated, “This is a very direct attack; we will defend our workers, companies, and country.”
Calling the tariffs unjustified, Carney remarked on the lack of detail surrounding Trump’s executive order, noting that he would return to Ottawa on Thursday to lead a special Cabinet meeting focused on U.S. relations. In light of these tensions, Carney announced a CA$2 billion ($1.4 billion) “strategic response fund” aimed at safeguarding Canadian auto industry jobs impacted by the tariffs.
The automotive sector, crucial to Canada as its second-largest export industry, employs over 125,000 Canadians directly and another 500,000 in associated industries. “Canada will be there for auto workers,” Carney assured. Initially, Trump exempted Mexico and Canada from similar tariffs for American automakers, but the imposition of new duties has exacerbated global trade tensions, fostering uncertainty.
The Conference Board recently reported a drop in the U.S. consumer confidence index to 92.9, the lowest level since January 2021, marking a 7.2-point decline in March and continuing a four-month downward trend. “His trade war is hurting American consumers and workers, and it will hurt more,” Carney said during a campaign event in Windsor, Ontario, ahead of Canada’s election on April 28.
Beginning in April, the tax on auto imports presents challenges for car manufacturers, who anticipate increased costs and diminished sales. Prior to this, Trump enacted a 25% tariff on Canadian steel and aluminum and has warned of comprehensive tariffs on all Canadian products and those from other trading partners starting April 2. Carney accused Trump of aiming to weaken Canada, declaring, “He wants to break us so America can own us,” but assured that unity within Canada remains steadfast.
During a campaign speech near the Ambassador Bridge—a vital U.S.-Canada trade route—Carney underscored the bridge’s significance in auto manufacturing, which channels $140 billion Canadian dollars ($98 billion) in commerce annually, equating to CA$400 million ($281 million) daily. He expressed concern over the potential implications for jobs and earnings, indicating that the bilateral relationship has fundamentally shifted.
In the automotive industry, parts frequently cross the U.S.-Canada border multiple times before reaching final assembly in Ontario or Michigan. Ontario Premier Doug Ford warned that the tariffs could lead to simultaneous shutdowns of auto plants on both sides of the border, saying, “President is calling it Liberation Day. I call it Termination Day for American workers.”
National relations have continued to sour, with Canadians expressing their displeasure toward Trump during a Carney campaign rally in Kitchener, Ontario. Uncommon in diplomatic circles, Trump’s lack of communication with Carney since his recent inauguration has drawn attention.
Opposition Conservative leader Pierre Poilievre stressed that the tariffs could harm American workers just like their Canadian counterparts. He encouraged Trump to reconsider his stance, pointing out past instances where the President reversed tariff decisions. “The message to President Trump should be to knock it off,” Poilievre asserted.