"The U.S. administration's actions, while not specifically targeting Canada, will disrupt the global economy and negatively impact global economic growth," said Canadian Prime Minister Mark Carney.
Canadian Prime Minister Mark Carney announced Thursday, in response to U.S. President Donald Trump's trade war, that he will impose tariffs of up to 25 percent on vehicles manufactured in Canada that do not comply with the USMCA, the treaty the two countries maintain with Mexico.
"The US administration's actions, while not specifically targeting Canada, will cripple the global economy and negatively impact global economic growth," said Carney, who believes Washington will have to "change course" in the face of the potential harm it will inflict on its own people.
While Canada has dodged the tariffs of at least 10 percent that Trump has imposed discriminatory measures on virtually everyone, the 25 percent tariffs on the automobile sector already in effect are a completely different matter.
"As I told President Trump in our call last week, Canada will respond to the auto industry tariffs (...) by matching them to 25 percent on all vehicles imported from the United States that do not comply with the North American Free Trade Agreement," he announced to the media.
These tariffs, unlike those in the United States, will not affect the parts and components used in vehicle manufacturing, Carney explained, and he announced that the government is already developing a plan to ensure manufacturers are not affected and can continue their operations and investments in Canada.
Carney noted that Canada is taking these measures "reluctantly," but with "foresight" in order to have "maximum impact on the United States and minimum impact on Canada." He also clarified that they will not affect agreements with Mexico.
Previously, on social media, Carney reported on a conversation he had with Acting German Chancellor Olaf Scholz, in which they agreed to "strengthen the diverse trade relationship between Canada and Germany."
"As we face the crisis caused by President Trump's tariffs, having reliable trading partners is more important than ever," the Canadian prime minister stressed.
