Thu Mar 27 23:20:33 UTC 2025: ## Canada Vows Forceful Retaliation Against US Auto Tariffs

**OTTAWA** – Canadian Prime Minister Mark Carney has vowed a strong response to US President Donald Trump’s newly imposed 25% tariff on imported cars, declaring that “nothing is off the table” in retaliation. The move marks a significant escalation in trade tensions between the two countries and signals a dramatic shift in their relationship.

Carney described the tariffs as the end of the long-standing close economic and security ties between the US and Canada. He stated that Canada will need to diversify its trade relationships and reduce its reliance on the US, implementing unprecedented measures at an accelerated pace.

The Trump administration’s executive order, effective April 2nd, has been met with widespread condemnation. Both Canada and Mexico see the tariffs as a violation of the 2019 trilateral free trade agreement. However, the United Auto Workers (UAW) union praised the decision, claiming it would protect American jobs and reverse the negative impacts of free trade agreements.

Critics, however, warn that the tariffs will not lead to immediate job creation in the US, with new production lines taking years to establish. Industry experts, like Flavio Volpe of the Canadian Automotive Parts Manufacturing Association, predict dire consequences. Volpe highlighted the deep integration of the North American auto industry, suggesting the tariffs could cripple production on both sides of the border, pointing out that nearly two million vehicles built in Canada are destined for US car companies. General Motors has already experienced a significant stock drop since the announcement.

Concerns about the economic fallout are widespread. German Chancellor Olaf Scholz called the tariffs a path to mutual losses, while Carney hinted at significant negative global economic consequences. Canada intends to respond with retaliatory tariffs designed to maximize impact on the US while minimizing harm to Canada. Carney stressed that Canada will not back down and will respond forcefully to defend its workers and its country.

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