US-Canada relationship: PM Mark Carney Says Long-Standing Partnership Ends After Trump’s Tariff Threats. Following a cabinet meeting in Ottawa, Carney stated that Canada has to drastically cut back on its dependency on the United States.
Trump’s Tariff Move Escalates Tensions
Trump’s declaration of a 25% tariff on cars and car parts imported from Canada has heightened concerns about a trade war. The Canadian Prime Minister called it a direct attack and a violation of the US-Mexico-Canada trade agreement (USMCA).
Carney emphasized that while diplomatic efforts would continue, retaliatory trade measures were being prepared. “There is no going backwards,” he stated, noting that Canada would diversify its trade partnerships.
Economic Fallout and Future Steps
The tariffs are expected to hit five major sectors:
- Automotive
- Lumber
- Steel and Aluminum
- Semiconductors
- Pharmaceuticals
Carney warned that Trump’s tariff policies could disrupt North America’s integrated supply chains. Canada will announce its countermeasures after Trump’s expected April 2 announcement on further tariff actions.
Strained Diplomacy
While Carney has no immediate plans to visit Washington, a call between Trump and Carney is expected soon. The Canadian Prime Minister also began strengthening relations with France and the United Kingdom, signaling a pivot towards European alliances.
Looking Ahead
US-Canada relationship: Canada enacts policies to aid workers and businesses hit by tariffs. Carney vows to protect economic interests.
Source: CNN
