Key Takeaways:

• Canadian Prime Minister Mark Carney labels Trump's new tariffs on vehicles as a "direct attack" on Canada.
• Carney highlights that the trade war is negatively affecting American consumer confidence.
• Canada is readying a package of retaliatory measures that may include tariffs and export duties.
• Conversations between Carney and Trump are urgently awaited as tensions escalate over trade policies.

Canadian Prime Minister Mark Carney has sharply criticized U.S. President Donald Trump for imposing tariffs on imported vehicles, describing the move as “a direct attack” on Canada. Speaking in Kitchener, Ontario, Carney expressed concern that the tariffs, set to begin in April, will exacerbate issues already affecting the North American auto industry and may ultimately harm American consumers as well. “His trade war is hurting American consumers and workers and it will hurt more,” Carney stated, echoing sentiments he shared earlier while campaigning in Windsor, Ontario where SCMP reported similar views.

In the wake of these tariffs, which Carney noted are a response to earlier customs duties on Canadian steel and aluminum, Canada is preparing a strategic response. Carney mentioned that the Canadian government might impose retaliatory tariffs totaling C$155 billion as well as non-tariff measures, such as levying export duties on commodity exports to the United States. “We will defend our workers, we will defend our companies, we will defend our country,” he promised, signaling a united front against these economic aggressions from the U.S. Reuters provides more details on the nature of Canada’s potential response.

As consumer confidence in the U.S. continues to dwindle, with the Conference Board reporting a drop in the consumer confidence index, Carney emphasized the interconnectedness of the U.S. and Canada economies as he highlighted the impact of the tariffs on Canadian auto workers, with 125,000 directly employed in the car industry. Ontario Premier Doug Ford, who supports Carney’s stance, echoed these sentiments, asserting, “We’re going to make sure that we inflict as much pain as possible to the American people without inflicting pain on the Canadian population.”

The sense of urgency in dealing with Trump’s tariffs is palpable, especially with the high-level cabinet meeting planned to discuss these issues further. Carney has yet to communicate directly with Trump since taking office, a situation he hopes to rectify soon as relations between the neighboring countries continue to strain under recent policies. “The relationship between Canada and the United States has changed. We did not change it,” Carney stated forcefully, marking the seriousness of the situation as the countries navigate this evolving economic landscape.