Our previous relationship with the United States is “over.” PM Mark Carney of Canada says

With new tariffs going into force, Canadian Prime Minister Mark Carney has announced that the country’s outdated economic ties with the US are “over.”

In response to US President Donald Trump’s 25% tariff on imported cars and auto parts, Canadian Prime Minister Mark Carney has announced that the country’s long history of close economic and security ties with the US is finished.

Carney described the tariffs as a major setback to North American trade and stated that Canada needs to “fundamentally reimagine” its economy in reaction to them. He made these remarks in Ottawa following a cabinet meeting. Referring to the landmark 1965 Canada-US Automotive Products Agreement, he declared, “That’s finished with these tariffs.”

A 25% duty on Canadian steel and aluminum has already been imposed by the US as part of an ongoing trade dispute, and the additional duties are scheduled to go into effect on April 2. About C$60 billion (£32 billion) in tariffs on US exports have been imposed by Canada in retaliation, and Carney pledged more restrictions on American sectors.

With the announcement that the tariffs would be “permanent,” Trump threatened even more severe trade restrictions and cautioned Canada and the EU against coordinated economic reprisal. “Large tariffs, far larger than currently planned, will be placed on both governments if the European Union collaborates with Canada to harm the US economy,” he wrote on Truth Social.

Carney has changed the emphasis of his campaign in anticipation of the federal election next month, calling off planned trips to Quebec to meet with ministers and plan trade replies. While meeting with auto workers in Windsor, Ontario, opposition leader Jagmeet Singh of the NDP changed his plans as well. He called for a prohibition on businesses moving their operations because of US trade policies and denounced the tariffs as a “betrayal.”

Mexico, which is the United States’ largest auto supplier, has not publicly criticized the tariffs though. As she emphasized that tariffs are in conflict with the North American free trade agreement, which Trump himself renegotiated during his first term, President Claudia Sheinbaum said her administration would provide an official reaction on April 3.

Trump contacted Carney to arrange a call, which is anticipated to take place in the next few days and would be their first direct discussion since Carney assumed office, as tensions rise.