Canadian PM Mark Carney announces end of ties with US over Trump tariff

Carney's statement comes a day after Trump announced 25 per cent tariff on auto imports

In response to the high tariffs imposed by US President Donald Trump, Canadian Prime Minister Mark Carney on Thursday, March 27 (local time), announced that its old relationship with the US is “over”.

 

Carney, who left the election campaign to chair the Cabinet committee on US relations in Ottawa, said that the US tariffs are forcing them to rethink and reshape its economy and seek “reliable” trading partners, reported The Financial Times.

 

“The old relationship we had with the United States, based on deepening integration of our economies and tight security and military co-operations, is over,” Carney said. He further said, “The time will come for a broad renegotiation of our security and trade relationship.”

 

 

Carney’s statement comes a day after Trump announced a 25 per cent tariff on auto imports, a move that he believes would foster US manufacturing but could also put a financial squeeze on automakers that depend on global supply chains.

 

Automobiles are Canada’s second-largest export and the sector employs 125,000 Canadians directly and almost another 500,000 in related industries, reported AP.

 

Our response is to fight, to protect, and to build. pic.twitter.com/xKDe9b1Gjx

— Mark Carney (@MarkJCarney) March 27, 2025

Canada to retaliate

In a fight against tariffs, Carney said Canada will take retaliatory trade actions that will have “maximum impact in the US and minimum impact in Canada”.

 

“We will fight back with everything we have to get the best deal for Canada. We will build an independent future for our country, stronger than ever,” Carney said. However, he did not disclose any retaliatory measures, saying that he would not disclose Canada’s response strategy prematurely.

 

He also emphasised that Canada would need to adapt its economic strategies, especially in industries like automotive manufacturing, to reduce reliance on the US and look for “reliable” trading partners.