United States President Donald Trump on March 27 announced a steep 25 per cent tariff on imported vehicles and auto parts, leading to outcry from major trading partners — many of who are discussing retaliatory measures, signalling increased trade tensions in the near future.
The duties will be effective from April 3, 2025. Among the trading partners considering action include Germany, the European Union, Japan and Canada. Notably, Donald Trump has also threatened “far larger” action against the EU and Canada, if they work together “to do economic harm to the USA”.
In response, Canada's new Prime Minister Mark Carney said the northern neighbour and close ally's “old relationship” with the US “is over”, according to reports.
The US's southern neighbour Mexico's President Claudia Sheinbaum also condemned the tariffs as contravening the North American trade deal, but added that they would wait till April before responding.
Mark Carney called Donald Trump's auto tariffs a “direct attack” on Canadian workers. He also said that he would talk directly to the US President soon.
Notably, this is the first time that the US and Canadian heads of state have not held a meeting immediately after new leaders taking office. Carney took oath on March 14.
“We will be speaking soon, certainly in the course of the next day or two. Trump has to respect Canada's sovereignty. That's not much to ask, but apparently it's a lot for him,” Mark Carney said.
Further back, during his re-election campaign last year and after taking office in January 2025, Donald Trump antagonised Canadians by making multiple remarks about taking over the country as the “51st state” of the USA. He also repeatedly called then-PM Justin Trudeau as “Governor Trudeau” and entertained speculation over a possible military annexation in the north.
According to Mark Carney, the relationship between the US and Canada could have “some trust” restored, but there is “no turning back”.
“It is clear that the United States is no longer a reliable partner. It is possible that, with comprehensive negotiations, we will be able to restore some trust, but there will be no turning back. We will need to dramatically reduce our reliance on the United States. We will need to pivot our trade relationships elsewhere,” Mark Carney said.
He also called the tariffs unjustified, adding, “We will fight the US tariffs with retaliatory trade actions of our own that will have maximum impact in the United States and minimum impacts here in Canada.”
“The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over,” Mark Carney said, asking Canadians for a clear and strong mandate in the next elections, given “the biggest crisis in our lifetimes”.
According to an Associated Press-NORC Center for Public Affairs Research poll of 1,229 US adults conducted from March 20-24, 2025, fewer Americans now view Canada and the US as “close allies” compared to responses from 2023. The reason? Strain in economic and military relationships.
The most significant shift in viewpoint was among Democrats. Earlier, seven in 10 saw Canada and the US as close allies before the Donald Trump administration, but now only five in 10 do.
Most respondents still see Canada and the US as “friendly”, only five in 10 overall consider the northern neighbour a “close ally”. In September 2023, a Pearson Institute / AP-NORC poll found six in ten responded positively to the “close ally” tag.
About three in 10 see Canada as “friendly but not a close ally”, and two in 10 say the two countries are “not friendly but not enemies.” Very few see them as outright “enemies.”
(With inputs from Agencies)
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