Canadian Prime Minister, Mark Carney, says the old economic and security partnership with the US is over. This comes after Donald Trump’s tariffs.
Carney told reporters in Ottawa that Canadians need to reimagine their economy. He said the country will have its own tariffs to counter the US. These tariffs will have a big impact on the US.
Trump announced a 25% tariff on all cars and car parts imported to the US. This will start on April 2 and will be permanent.
Carney said the original Canada-US auto pact from 1965 was a big deal for him, but it’s over now. He believes the Canadian auto industry can survive the US tariffs if the government and businesses work together to find new ways.
Canada needs to build an economy that Canadians can control. They need to rethink their trade relationships with other partners. It’s unclear if Canada can have a strong trade relationship with the US in the future.
The US started imposing a 25% tariff on imports from Canada and Mexico. They also imposed a 25% tariff on all steel and aluminum imports. Canada retaliated with its own tariffs on US goods worth $16 billion.
On Thursday, Trump warned the EU and Canada not to team up against the US in a trade war. He said if they do, the US will impose even bigger tariffs on them.
Source: BBC