Canada's 'old relationship' with the US is over: PM Carney amid tensions over Trump's tariffs

Canadian Prime Minister Mark Carney said the country’s close ties with the United States “are over” amid an ongoing trade war which was sparked by sweeping tariffs from the Trump administration.

This comes as leaders from Japan, Germany, and France criticised Donald Trump’s new car import tariffs, with some allies warning of possible retaliation.

Mark Carney cautioned Canadians that Trump had permanently changed relations, and even future trade deals would not restore past ties.

“The old relationship we had with the United States, based on deepening economic integration and close security and military cooperation, is over,” he said.

The Canadian PM also described Trump’s car tariffs as “unjustified” and said they violated existing trade agreements.

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Carney plans to meet provincial leaders and business heads on Friday to discuss a response, with countermeasures expected next week.

“We will fight these tariffs with our own trade actions,” Carney said. “Our goal is to hit the US hard while minimising the impact on Canada.”

Trump’s tariffs on car imports

Earlier, Trump announced on Wednesday that a 25 per cent tariff on imported cars and parts will take effect from 3 April. Experts warn this could reduce production, increase prices, and escalate a global trade war.

Last year, the US imported nearly $475 billion worth of cars, mainly from Mexico, Japan, South Korea, Canada, and Germany. European manufacturers alone sold over 750,000 vehicles in the US.

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Trade war between US, Canada

The US has already imposed 25 per cent tariff on some Canadian goods, along with the same duty on all aluminium and steel imports. In response, Canada has placed about C$60bn (42bn USD) in tariffs on US products.

The new car tariffs will take effect on 2 April, with import charges on vehicles starting the next day, according to the White House. Taxes on car parts will begin in May or later.