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Updated March 27th 2025, 13:07 IST

Canada PM Carney Calls Trump’s Auto Tariffs a ‘Direct Attack’ on Country

Donald Trump has imposed a 25 per cent tariff on all vehicles that are not made in United States.

Reported by: Aditi Gautam
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Mark Carney May be Next Canada PM
Mark Carney May be Next Canada PM | Image: AP

Canadian Prime Minister Mark Carney said Wednesday that U.S. President Donald Trump ’s auto tariffs are a “direct attack” on his country and that the trade war is hurting Americans, noting that American consumer confidence is at a multi-year low.

“This is a very direct attack,” Carney responded. “We will defend our workers. We will defend our companies. We will defend our country.”

Carney said he needs to see the details of Trump’s executive order before taking retaliatory measures. He called it unjustified and said he will leave the election campaign to go to Ottawa on Thursday to chair his special Cabinet committee on U.S. relations.

Carney earlier announced a CA$2 billion ($1.4 billion) “strategic response fund” that will protect Canadian auto jobs affected by Trump’s tariffs.

Autos are Canada’s second largest export, and Carney noted it employs 125,000 Canadians directly and almost another 500,000 in related industries.

“Canada will be there for auto workers,” he said.

Read More: Trump Presses Ahead with 25% Tariff on Imported Cars

Donald Trump has imposed a 25 per cent tariff on all vehicles that are not made in United States. All imported vehicles, including those assembled overseas by American manufacturers will now have to face hefty tariffs. The move, aimed at boosting domestic car production, is expected to significantly increase car prices in the United States. Trump called the decision "very exciting" for the country's manufacturing sector.  

Trump, defending his stance, said the policy would benefit companies manufacturing within the US. The move follows his previous criticism of India’s high auto tariffs, with a reciprocal tax set to take effect on April 2.

Published March 27th 2025, 11:59 IST