When President Trump activates his massive global tariffs, former American trading partners have designed their own retaliatory tariffs, which he believes will have comprehensive effects on Americans’ pocketbooks.
Thursday, recently elected Canadian Prime Minister Mark Kearney; New 25% tariffs announced About American-made cars. The tariffs apply to all vehicles that do not comply with the USMCA, a trade agreement between Canada, Mexico and the United States that was signed into law several years ago. However, customs duties do not apply to car parts. Carney said he believes Canada will make roughly $5.7 billion from the new measures.
The US has already collected multiple tariffs on Canada, including national ones. Steel and Aluminum and Canada exports. Canada and Mexico have been exempt from the widespread tariffs Trump announced this week.It is called “mutual” tariffs) This was targeted at dozens of countries around the world, but previous measures remain.
“Our response to these latest tariffs is to fight, protect and build,” Carney said at a press conference. “We plan to fight US tariffs with our own retaliatory trade measures that have the biggest impact in the United States and minimal impact in Canada.”
“We are reluctant to take these steps,” Carney told reporters. He continued: “We can do better than the US. Where it comes out depends on how much damage they are causing the economy.”
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Carney got the opportunity to point out that Trump effectively violated the trade deals his own administration negotiated during his first term. In fact, the USMCA was introduced in 2020 towards the end of Trump’s first tenure at the White House. Carney also pointed out that Trump’s trade war would ultimately hurt many Americans, and therefore he believed that tariffs would eventually be withdrawn.
“The American administration should ultimately change course, given the future damage to their own people,” Carney said. “Their policies hurt American families until the pain becomes impossible to ignore, but I don’t think they’ll turn, so the path to that point may really be long.
Kearney also spoke pessimistically about US-Canada relations. “The global economy is fundamentally different from yesterday. The system of global trade fixed in the US is over. Our old relationship of steadily deepening integration with the US is over.
“This is a tragedy,” he added. “It’s also a new reality. We have to deal with it both with purpose and with power.”
