“We take these measures reluctantly. And we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.
Unlike Trump’s tariffs, which also target auto parts, Canada’s measures will focus solely on vehicles. Carney emphasised the importance of the integrated North American auto industry, where parts often cross the Canada-US border multiple times before final assembly in plants in Ontario or Michigan.The impact of US tariffs is already being felt in Canada. Automaker Stellantis has temporarily closed its Windsor, Ontario, assembly plant for two weeks starting April 7, according to the local union, reported PTI. James Stewart, president of Unifor Local 444, said further scheduling changes were likely in the coming weeks.
The auto sector is critical to Canada’s economy, ranking as the country’s second-largest export and directly employing 125,000 workers, with another 500,000 in related industries. To counter potential job losses, Carney previously announced a CAD 2 billion (USD 1.4 billion) “strategic response fund” aimed at protecting Canadian auto workers.
Trump has also imposed 25% tariffs on Canadian steel and aluminium. Carney warned that while the US administration’s policies would harm American consumers, change was unlikely in the near future.
“Given the prospective damage to their own people the American administration should eventually change course,” Carney said. “Although their policy will hurt American families, until that pain becomes impossible to ignore, I do not believe they will change direction, so the road to that point may indeed be long. And will be hard on Canadians just as it will be on other partners of the United States.”
A former central banker in both Canada and the UK, Carney called Trump’s trade measures “unjustified and unwarranted” and warned of global repercussions.
Canada has already implemented CAD 30 billion (USD 21 billion) worth of retaliatory tariffs on a range of American products, including orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles, and certain pulp and paper products.
Ontario Premier Doug Ford, whose province is home to the majority of Canada’s auto industry, described Canada’s latest tariffs as a “measured response.”
