27 March: Prime Minister Mark Carney made it clear Thursday that Canada will not bow to mounting trade pressure from U.S. President Donald Trump, vowing to retaliate with strength and protect Canadian workers and industries amid a rapidly escalating trade war.
Speaking to reporters from West Block, Carney said Trump’s sweeping 25% tariff on all non-U.S.-made vehicles is part of an effort to fundamentally restructure the American economy—one that could severely disrupt Canada’s deeply integrated auto sector.
“The President of the United States is trying to reshape his economy—and by extension, ours and the world’s,” Carney said. “I understand his intentions, but I completely disagree with his approach. These actions will ultimately hurt American consumers and workers.”
While Trump’s auto tariffs take effect next week, Carney confirmed that Canada will unveil its own retaliatory measures with “maximum impact” on the U.S. and “minimum impact” at home. He said the government is considering additional countermeasures that could include tariffs on American forestry, pharmaceuticals, semiconductors, and lumber products.
“Nothing is off the table. We will not be intimidated,” Carney stated firmly. “We will respond forcefully and defend our workers, our economy, and our sovereignty.”
Carney also dismissed Trump’s veiled warning on Truth Social that Canada and the EU would face even greater tariffs if they coordinated a response, saying, “We’re a sovereign nation. We make our own decisions. I take note of his comments—nothing more.”
Carney revealed that Trump had reached out late Wednesday to schedule a phone call, but that conversation had not yet taken place. In the meantime, Carney said he’s convening a national meeting of premiers, business leaders, and Indigenous leaders to plan a coordinated response. A first ministers’ meeting is expected Friday.
He added that Ontario Premier Doug Ford received assurances from U.S. Commerce Secretary Howard Lutnick that Canadian-built vehicles with over 50% U.S. content would be exempt from the new levies under the CUSMA trade deal—a claim Ford said he found difficult to believe.
Carney reiterated that Canada would remain committed to defending its interests through negotiation, but would not reveal specifics about upcoming trade actions. “In a negotiation, it doesn’t make sense to tip your hand,” he said.
In a striking moment, Carney declared that the U.S. is “no longer a reliable partner,” warning that future Canadian governments will need to take a more guarded approach to bilateral relations.
“There is a silver lining here,” he added. “This is our moment to learn—to look after ourselves and build a stronger, more self-reliant Canada.”
Carney said that the country must now “reimagine” its auto industry and seek new trade partners, possibly expanding ties with Europe.
The prime minister’s remarks came a day after Trump imposed the controversial tariffs and threatened even more if Canada or the EU retaliated. The tariffs are expected to fuel inflation in the U.S. while severely impacting Canada’s manufacturing sector.
Canada’s Finance Minister François-Philippe Champagne echoed Carney’s views, saying the government stands ready to support workers and businesses, and that a fund had already been created to shore up the Canadian auto supply chain.
With growing political consensus at home, all major Canadian party leaders have voiced support for retaliatory measures. Conservative Leader Pierre Poilievre has also called for targeted tariffs and direct financial assistance to affected workers and industries.
Carney, who paused his election campaign to handle the trade crisis, emphasized that Canada’s economic fundamentals remain strong and resilient, with low debt-to-GDP ratios and capacity to weather a potential downturn.
“This is a defining moment for our country,” Carney said. “We won’t back down.”
