Canadian Prime Minister Mark Carney declared on Thursday that the longstanding economic and security partnership between Canada and the United States has reached a turning point. Speaking a day after U.S. President Donald Trump announced steep auto tariffs, Carney stated that the relationship, once rooted in "deepening integration of our economies and tight security and military cooperation, is over."
"We must fundamentally reimagine our economy," Carney emphasized, outlining plans to retaliate against the U.S. tariffs while minimizing domestic fallout. Canada will impose targeted trade measures designed to "have maximum impacts in the United States," he said, vowing to defend Canadian workers with "everything we have."
The prime minister also unveiled a 2-billion-Canadian-dollar ($1.4 billion) "strategic response fund" to strengthen Canada’s auto sector and reduce reliance on U.S. markets. Carney called for trade diversification, stating, "It is clear that the United States is no longer a reliable partner," but left open the possibility of future negotiations to rebuild trust.
President Trump’s office reportedly reached out to schedule a call between the two leaders, which would mark their first direct dialogue since the tariff announcement. The U.S. tariffs, set to take effect next week, impose a 25% levy on all imported vehicles.
