OTTAWA, Canada – Canadian Prime Minister Mark Carney declared that Canada’s longstanding economic and security relationship with the United States is over, in the wake of U.S. President Donald Trump’s recent tariffs on Canadian goods.
Speaking to reporters in Ottawa following a cabinet meeting on Thursday, March 27, 2025, Carney emphasized that Canada must “fundamentally reimagine our economy” in response to the U.S. tariffs.
Carney’s comments come after Trump announced that a 25% tariff would be imposed on imported vehicles and vehicle parts, a move that Carney called the end of the Canada-US Automotive Products Agreement of 1965, one of the most significant trade deals in modern Canadian history.
“That’s finished with these tariffs,” Carney said, speaking in French.
The Canadian government has pledged to respond with retaliatory tariffs targeting U.S. products, ensuring that the impact on the U.S. economy is felt.
“We will respond with tariffs that will have the maximum impact,” Carney added, emphasizing that Canada’s auto industry could adapt if the government works closely with the business sector to “retool” the industry.
The announcement of the new tariffs comes after Trump’s decision to impose a blanket 25% tariff on Canadian goods, including aluminum and steel.
Canada has already retaliated with about C$60 billion ($42 billion) in tariffs on U.S. goods, further escalating tensions between the two countries.
Carney stressed that it was now essential for Canada to build an economy that it can control, including rethinking trade relationships with other international partners.
“It remains to be seen whether we can continue to have a strong trading relationship with the United States,” he noted.
In light of these developments, Carney has shifted his focus ahead of the upcoming Canadian general election to address the trade challenges posed by the U.S. tariffs.
Originally scheduled to campaign in Quebec, Carney instead met with his ministers to discuss possible trade responses.
The new tariffs on cars will take effect on April 2, with additional taxes on vehicle parts slated to follow in May.
The situation escalated further when Trump warned both Canada and the European Union (EU) on his Truth Social platform that any joint economic actions against the U.S. would result in even higher tariffs.
Carney revealed that President Trump reached out to him the previous evening to schedule a call, which is expected to take place in the coming days.
If it happens, this would mark the first conversation between the two leaders amid the ongoing trade war.
