Canada PM Mark Carney calls Trump tariffs ‘direct attack’ but won’t take retaliatory action: Here’s why

Hours after United States President Donald Trump announced a “permanent” 25 per cent tariffs on auto imports – Canada’s second-largest export business – Canadian Prime Minister Mark Carney termed it as a “direct attack” on the country.

“This is a very direct attack,” Mark Carney responded. “We will defend our workers. We will defend our companies. We will defend our country.”

The Canadian prime minister, however, did not announce any retaliatory measures against the US but said that he needs to see details of the executive order imposing 25 per cent tariff on auto imports.

Calling it unjustified, Mark Carney said he will leave the election campaign to go to Ottawa on Thursday to chair his special Cabinet committee on US relations.

Auto tariffs are not Donald Trump's first, the US president had earlier imposed 25 per cent tariffs on Canada’s steel and aluminum. He has also threatened tariffs on all Canadian products, asserting to its neighbour to make the country America's 51st state.

Carney earlier announced a CA$2 billion ($1.4 billion) “strategic response fund” that will protect Canadian auto jobs affected by Trump’s tariffs.

The prime minister also noted the sector employs 125,000 Canadians directly and almost another 500,000 in related industries.

“Canada will be there for auto workers,” he said.

Also Read | From 200% tariff on European wine to 25% on auto imports — A timeline of Donald Trump’s trade war

Donald Trump previously granted a one-month exemption on his stiff new tariffs on imports from Mexico and Canada for US automakers.

The president has plunged the U.S. into a global trade war — all while on-again, off-again new levies continue to escalate uncertainty.

“His trade war is hurting American consumers and workers and it will hurt more. I see that American consumer confidence is at a multi-year low,” Carney said earlier while campaigning in Windsor.

The tax hike on auto imports starting in April means automakers could face higher costs and lower sales.

(With AP inputs)