The US-Canada relationship is set for a major shift as newly appointed Canadian Prime Minister Mark Carney stressed the need to reduce Canada’s dependence on its neighbour. He declared the “old relationship” with the U.S. “is over” following new tariffs imposed by President Donald Trump.
“The old relationship we had with the United States, based on deepening integration of our economies and tight security and military cooperation is over,” Carney said on Thursday, following Trump’s announcement of 25% tariffs on auto imports.
Carney, who took office two weeks ago, said he will speak with Trump in the coming days after the U.S. president reached out to schedule a call. “We will be speaking soon, certainly in the course of the next day or two,” he said, while stressing that Trump must respect Canada’s sovereignty. “That’s not much to ask, but apparently it’s a lot for him.”
Trump’s aggressive trade stance has reignited tensions, with the U.S. president openly suggesting that Canada should become the 51st U.S. state—an assertion that has deeply angered Canadians. Carney dismissed such rhetoric and underscored the need for Canada to rethink its economic future.
“It is clear that the United States is no longer a reliable partner. It is possible that, with comprehensive negotiations, we will be able to restore some trust, but there will be no turning back,” Carney said. “We will need to dramatically reduce our reliance on the United States. We will need to pivot our trade relationships elsewhere."
Carney’s remarks come amid a heated election campaign, which was initially expected to be a major challenge for the governing Liberals. However, Trump’s trade war has sparked a surge of nationalism in Canada, positioning Carney as the leader best suited to defend the country’s interests.
Trump himself acknowledged the impact his actions have had on Canadian politics. In response, Carney announced a robust retaliation plan.
“We will fight the U.S. tariffs with retaliatory trade actions of our own that will have maximum impact in the United States and minimum impacts here in Canada,” he said. “It’s my solemn promise that when President Trump threatens us again, we will fight back. We will fight back with everything we have to get the best deal for Canada. We will build an independent future for our country stronger than ever.”
Automobiles are Canada’s second-largest export and the sector employs 125,000 Canadians directly and almost another 500,000 in related industries.
Carney announced this week a CA$2 billion ($1.4 billion) “strategic response fund” that will protect Canadian auto jobs affected by Trump’s tariffs.
Trump previously had granted a one-month exemption on his stiff new tariffs on auto imports from Mexico and Canada for U.S. automakers.
In the auto sector, parts can go back and forth across the Canada-U.S. border several times before being fully assembled in Ontario or Michigan.
Trump previously placed 25% tariffs on Canada’s steel and aluminum and is threatening sweeping tariffs on all Canadian products — as well as on all of America’s trading partners — on April 2.
The president has plunged the U.S. into a global trade war — all while on-again, off-again new levies continue to escalate uncertainty.
The tax hike on auto imports starting in April means automakers could face higher costs and lower sales.
“This is not an industry that is Donald Trump’s to steal or take,” said Lana Payne, the National President of Unifor, the union that represents auto workers in Canada.
Payne said that Carney should tell Trump that if U.S. automakers are going to sell cars and trucks in Canada, they are going to have to build in Canada.
Opposition Conservative leader Pierre Poilievre said Trump needs to “knock it off” when asked by journalists about the president's repeated attacks.
“We will never be the 51st state but we can be friends again with the United States if he reverses course,” Poilievre said.
(With AP Input)
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