Canadian Design and Construction Report staff writer
Facing tariffs that are “unjustified, unwarranted and misguided”, Canada will take “purposeful and forceful” action to defend economic interests, Prime Minister Mark Carney said on April 3.
“These tariffs will rupture the global economy,” Carney said, standing firm in his belief that the U.S. decision would lead to economic stagnation, not just in the United States but worldwide. He added that the retaliatory measures taken by the U.S. would only hurt workers, businesses, and consumers, both in the U.S. and abroad and could rupture the global economy.
In response, Canada will impose tariffs on U.S.-made vehicles that do not meet the requirements of the Canada-U.S.-Mexico Agreement (CUSMA). The new tariff on U.S. cars is expected to affect billions of dollars in imported vehicles.
“We must respond with both purpose and force,” Carney said. “We are a free, sovereign, and ambitious country. We will fight to bring these tariffs to an end.”
Carney also pointed to the temporary closure of Stellantis’ Windsor auto plant, which impacts about 3,200 workers in the wake of U.S. tariffs on Canadian vehicles. He said the Canadian government expected additional tariffs on other industries, including lumber, pharmaceuticals, and semiconductors, as Trump continues to assert that such measures are necessary for “national defense.”
“I’m deeply concerned about the impact this will have on Americans. These tariffs will weaken the American economy. Prices will rise, growth will stall, and the risk of a recession looms large,” Carney explained.
Carney also said Canada will pivot from a historical reliance on the U.S. as its primary trade partner. While he acknowledged the ongoing importance of the U.S. as Canada’s ally in matters of defense, he stressed that the old model of economic integration with the U.S. is “over.”
“We must now look to other reliable trading partners,” Carney said. “Countries like Australia, the U.K., Mexico, and France will play an increasingly important role in our future prosperity.
“We are living in a new world now,” Carney said. “It will be hard on Canadians, but I have no doubt we will rise to the challenge. We’ve done it before, and we will do it again.”
Conservative Leader Pierre Poilievre called Trump’s tariffs a direct attack on Canadian jobs and workers. Poilievre, in Kingston, Ontario, during day 12 of the federal election campaign, reiterated his support for Canadian industries and pledged a tax break for the automotive sector.
“Canadians are angry and anxious. These tariffs are unjustified, and we must respond,” Poilievre said. He proposed a policy to exempt Canadian-made vehicles from the Goods and Services Tax (GST) in an effort to spur domestic sales and help manufacturers hit hard by the tariffs.
