Prime Minister Mark Carney Says Canada Will Match U.S. Auto Tariffs

In the wake of America’s latest salvo in their ongoing trade war, Canada will match nearly all American auto tariffs dollar for dollar.

 

Speaking to reporters Thursday morning from the foyer of the House of Commons, Prime Minister Mark Carney said that while Canada dodged new tariffs on Wednesday, measures imposed by U.S. President Donald Trump against Canada’s auto industry will still go ahead.

 

“While it’s progress that further tariffs were not imposed on Canada yesterday, the president’s actions will reverberate here in Canada and around the world,” Carney said. “They’re all unjustified, unwarranted, and in our judgement, misguided.”

 

Carney spoke to reporters shortly after wrapping a Thursday morning meeting with Canada’s premiers.

 

Trump’s slate of tariffs, Carney said, was a move to “reshape the international trading system,” saying their impacts on the global economy will be monumental.

 

Aside from filing disputes on Trump’s tariffs under existing trade agreements and with the World Trade Organization, Carney said Canada will move ahead with counter-tariffs, which will fund relief efforts for those impacted by the trade war.

 

“The government of Canada will be responding by matching the U.S.’s approach with 25% tariffs on all vehicles imported from the United States that are not compliant with CUSMA, our North American free trade agreement,” Carney said.

 

Canada’s tariffs will not, however, target auto parts — “because we know the benefits of our integrated production system,” he said.

 

Canada will also not target auto imports from Mexico, as Carney says they’re still respecting the terms of CUSMA.

 

Auto companies who maintain their Canadian investments and production are also eligible for relief from the tariffs, Carney said.

 

Carney decried the end of a productive and, while not perfect, effective trade relationship with the United States.

 

“Our old relationship with steadily deepening integration with the United States is over,” Carney said, reflecting on the new reality.

 

“The 80-year period when the United States embraced the mantle of global economic leadership, when it forged alliances rooted in trust and mutual respect and championed a free and open exchange of goods of services is over.”