"Chaos and uncertainty": Canadian leaders blast U.S. auto tariffs
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Ontario Premier Doug Ford (left) and Canadian Prime Minister Mark Carney during a meeting in Ottawa, Canada, on Friday. Photo: Dave Chan/AFP via Getty Images
Canadian politicians and industrial leaders blasted President Trump's new auto tariffs on Wednesday and vowed a swift response, including a backstop for Canada's largest companies.
Why it matters: One of America's closest allies three months ago is now preparing for an all-out trade war, with profound implications for both economies.
What they're saying: Outspoken Ontario Premier Doug Ford led the charge against Trump's levies on imported cars, which are going into effect April 2.
- "His 25 per cent tariffs on cars and light trucks will do nothing more than increase costs for hard-working American families. U.S. markets are already on the decline as the president causes more chaos and uncertainty. He's putting American jobs at risk," Ford wrote on X.
- He vowed to back any retaliatory tariffs put in place by the national government.
- Newly sworn-in Prime Minister Mark Carney said during a Wednesday evening briefing Canadians needed to move past "the shock of the betrayal" and protect their national interests.
- "We will defend our workers. Will defend our companies. Will defend our country and will defend it together," Carney said. "This will hurt us, but through this period, by being together, we will emerge stronger."
The big picture: U.S. trade policy has galvanized an unprecedented anti-American sentiment, and spurred an outbreak of Canadian nationalism strong enough to invert the country's political alignment.
Yes, but: That upswell of national feeling will soon run headlong into the impacts on the economy of huge tariffs imposed by Canada's largest trading partner.
- "Canadian businesses and households are doing their best to navigate the unpredictability of U.S. policy, and that uncertainty is affecting our economy," Bank of Canada governor Tiff Macklem said last week.
- RBC economists recently wrote that U.S. tariffs could easily push Canada's economy into recession by next year, with a surge in unemployment.
- Against that backdrop, Carney pointed to government facilities that would let companies delay tax payments and tap sources of liquidity to sustain their operations.
What's next: The ripple effects will likely start appearing in coming days, on both sides of the border.
- "The consequences of today's escalation in this destructive tariff war will not be contained to Canada, as much as the U.S. administration would like to pretend," Canadian Chamber of Commerce CEO Candace Laing said in a statement.
- "With this latest tariff, the U.S. administration has committed to taxing America's automotive manufacturers and increasing the production cost of a car."
- Carney said he would convene a Cabinet meeting on Thursday to discuss the trade response, and he expected to speak with Trump in the coming days.
Go deeper: Canadian PM slams Trump's "unjustified" tariffs
Editor's note: This article has been updated with comment from Canadian Prime Minister Mark Carney.
Rebecca Falconer contributed reporting.
