Canada PM Mark Carney says old relationship with US 'is over'

Canadian Prime Minister Mark Carney announced a shift in Canada-US relations. He stated that the old relationship, based on economic integration and military cooperation, is over.

Carney spoke to reporters in Ottawa after a cabinet meeting. He emphasized that Canadians must "fundamentally reimagine our economy" due to US President Donald Trump's tariffs.

He mentioned that Canada would respond with retaliatory tariffs aimed at maximizing impact on the US. Trump recently announced a 25% tax on imported vehicles and parts, calling it "permanent."

Carney described the 1965 Canada-US Automotive Products Agreement as his most important deal. He declared, "That's finished with these tariffs," speaking in French.

He believes Canada can maintain its auto industry despite US tariffs. However, this requires collaboration between government and businesses to "reimagine" and "retool" the industry.

Carney stressed the need for an economy that Canadians can control. This includes reevaluating trade relationships with other partners.

The future of Canada's trading relationship with the US remains uncertain, he added. Carney has adjusted his campaign plans ahead of next month's general election to address these import duties.

The US has already imposed a 25% tariff on Canadian goods, along with similar duties on aluminum and steel imports. In response, Canada has retaliated with approximately C$60 billion ($42 billion) in tariffs on US goods.

New car tariffs will take effect on April 2nd. Charges for businesses importing vehicles will start the following day, while taxes on parts may begin in May or later.

On Thursday morning, Trump warned Canada and the EU against collaborating against the US. He threatened larger tariffs if they worked together to harm the American economy.

Carney met with ministers in Ottawa to discuss trade options instead of campaigning in Quebec. He revealed that Trump reached out for a call scheduled within the next couple of days.

If it occurs, this would be their first conversation as heads of state. Pierre Poilievre, leader of the Conservative Party, criticized the tariffs as "unjustified and unprovoked."

The NDP also changed its campaign plans due to these developments. Jagmeet Singh spent time meeting union leaders and auto workers in Windsor, Ontario.

Singh called the US tariffs a "betrayal" by Trump against Canada. He claimed Trump started an illegal trade war without justification.

He suggested blocking any auto company moving operations out of Canada from selling cars there. Canadians will vote on April 28th.

Last year, about eight million cars were imported from the US into Canada. This accounted for roughly $240 billion in trade and half of overall sales.

Earlier this month, Carney criticized Trump during his victory speech after becoming Liberal leader but before taking office as prime minister. He stated that those who support Trump kneel before him rather than stand up to him.

Mexico is currently the largest supplier of cars to the US, followed by South Korea, Japan, Canada, and Germany.

Mexican President Claudia Sheinbaum declined to comment directly on new auto tariffs during her news conference Thursday morning but vowed to defend Mexico's interests.

Sheinbaum promised an "integral response" to Trump's tariffs by April 3rd when many are set to take effect. She noted that many US car companies operate in both Mexico and Canada under a free trade agreement negotiated by Trump himself during his presidency.

Sheinbaum asserted that there should not be any tariffs since that's contrary to free trade principles.