 "Trump's reciprocal tariffs: Canada retaliates with 25% duties; a 'reluctant' move, says Carney")
In a tariff-for-tariff move, Canadian Prime Minister Mark Carney said Thursday (April 3) that his nation will match US President Donald Trump’s 25 per cent auto tariffs.
The US tariffs, announced last month, went into effect Thursday.
Mark Carney said he told Trump over a phone call last week that Canada would be retaliating.
“We take these measures reluctantly. And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.
However, Canada has exempted auto parts, with the PM saying he valued the benefits of the integrated auto sector of the two nations.
Impact already visible in Canada
Carney said the impact of Trump’s tariff move was already visible in Canada.
A local union in Windsor, Canada revealed Wednesday that Automaker Stellantis has already shut down its operations in the area since April 7. The PM said it could impact 3,600 auto workers.
Autos are Canada’s second-largest export, directly employing 125,000 people and supporting nearly 500,000 more in related industries.
Last week, Carney unveiled a CA$2 billion ($1.4 billion) “strategic response fund” to safeguard Canadian auto jobs from Trump’s tariffs.
Trump has already imposed 25 per cent tariffs on Canadian steel and aluminum. According to Carney, more tariffs are likely coming—this time targeting pharmaceuticals, lumber, and semiconductors.
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View All“Given the prospective damage to their own people the American administration should eventually change course,” Carney said. “Although their policy will hurt American families, until that pain becomes impossible to ignore, I do not believe they will change direction, so the road to that point may indeed be long. And will be hard on Canadians just as it will be on other partners of the United States.”
Canada’s $21 bn tariffs remain in place
Canada’s initial CA$30 billion (US$21 billion) in retaliatory tariffs remain in place, targeting American goods like orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper products.
Carney temporarily suspended his election campaign to return to Ottawa and address Trump’s tariffs.
Meanwhile, Conservative leader Pierre Poilievre pledged to eliminate the federal tax on Canadian-made vehicles.
Ontario Premier Doug Ford, whose province is home to most of Canada’s auto industry, called the latest round of tariffs a “measured response.”
(With inputs from agencies)
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