Canada PM Carney: Close U.S. Ties “Over” After Auto Tariffs.

Canadian Prime Minister Mark Carney has declared a significant shift in Canada-U.S. relations following President Donald Trump's announcement of a 25% tariff on auto imports. Carney described the tariffs as a "direct attack" on Canada's economy, particularly affecting the auto industry, which employs approximately 125,000 Canadians directly and nearly 500,000 in related sectors.

In response, Carney has pledged "proportional retaliation" by April 2, considering measures such as retaliatory tariffs totaling up to CA$155 billion and non-tariff actions like export duties on commodities to the U.S. He emphasized Canada's readiness to defend its workers and industries, stating, "We will defend our workers. We will defend our companies. We will defend our country."

The timing of these developments is critical, as Canada approaches a snap federal election on April 28, framed by Carney as a referendum on national sovereignty amid rising nationalism. The election sees Carney's Liberal Party competing against Pierre Poilievre's Conservatives, with both parties polling closely.

Carney's stance reflects a broader reevaluation of Canada's economic strategy, aiming to reduce dependence on the U.S. and strengthen ties with other international partners. He has also announced a CA$2 billion strategic response fund to support jobs in the Canadian auto sector affected by the tariffs.

As tensions escalate, a high-level cabinet meeting is planned to finalize Canada's response, underscoring the gravity of the situation and its potential impact on the deeply integrated North American auto industry.