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Canadian PM Carney throws down the gauntlet on US tariffs

Newly-minted Canadian Prime Minister Mark Carney struck back against US President Donald Trump's sweeping tariff package on Thursday, detailing Canadian retaliation measures that will serve as a thermometer to see how well the US has been complying with its own USMCA (nee NAFTA) deal restrictions.

Key quotes

  • Canada will develop a framework for auto producers to avoid our counter tariffs, as long as they maintain their production and investment in Canada.
  • Canada tariffs will not affect auto parts and will not affect vehicle content from Mexico.
  • Canada will impose 25% tariffs on all vehicles imported from the US that are not compliant with the USMCA trade deal.
  • Every single dollar raised, about CAD 8B before remission, from these tariffs will go directly to our auto workers and the companies affected by these tariffs.
  • The previously announced retaliatory tariffs will remain in effect.
  • Until the pain caused by tariffs becomes impossible for the Trump administration to ignore, I do not believe they will change direction.
  • I am not at this time planning to coordinate Canada's response with other nations.
  • We need to reset our overall relationship with the United States.
  • I told Trump last week that I would retaliate on autos.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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