In a sharp escalation of trade tensions between close allies, Canadian Prime Minister Mark Carney has condemned the United States’ decision to impose a 25% tariff on all imported vehicles not manufactured in the U.S., calling it “a direct attack” on Canadian workers.
Ottawa accuses Washington of breaking trade pact
Speaking to reporters on Wednesday, Carney criticized President Donald Trump for what he described as a betrayal of the existing trade agreement between the two nations. “These tariffs against our auto industry are a direct attack on Canadian workers,” he said, adding that Trump had “betrayed our trade deal.”
The White House announced the sweeping tariffs earlier in the day, set to take effect on April 2. Trump declared that any vehicle not built on American soil would face the new duty, regardless of origin. “We are going to make the countries that do business in our country and take our wealth pay,” the U.S. president said during a televised address.
As reported by Digi24, the measure is intended to be permanent and is expected to have significant consequences for Canada’s auto exports, which are tightly integrated with the U.S. supply chain.
A test for North American trade relations
The announcement comes as a blow to cross-border economic cooperation under the USMCA (United States–Mexico–Canada Agreement), which was designed to modernize and stabilize North American trade. Canadian officials fear the new policy could damage thousands of jobs, particularly in Ontario, home to many of the country’s automotive manufacturing hubs.
While Trump’s administration argues that the tariffs will help revive domestic manufacturing and correct long-standing trade imbalances, Canadian and European leaders have pushed back. Earlier this week, Trump also lashed out at the European Union, accusing it of “treating the U.S. horribly on trade.”
Canada has not yet detailed retaliatory measures, but officials in Ottawa suggest a response is imminent. With the April 2 implementation date looming, the dispute threatens to reignite a broader trade conflict between major Western economies at a time of growing geopolitical instability.
