Prime Minister Mark Carney has confirmed that Canada will be matching the tariff actions taken by the United States on Wednesday. “The Government of Canada will be responding by matching the U.S. approach with 25 per cent tariffs on all vehicles imported from the United States that are not compliant with CUSMA, our North American Free Trade Agreement,” Carney announced Thursday morning.
On Wednesday, President Donald Trump implemented 25 per cent levies on Canadian auto-imports, effective Thursday, and Canadian auto parts, effective May 3rd. However, Carney adds that unlike the U.S., Canadas tariffs will not target auto parts, or vehicle content coming in from Mexico, who is respecting the CUSMA agreement. “We take these measures reluctantly, and we take them in ways that it’s intended they cause maximum impact in the United States, and minimum impact here in Canada.” The Prime Minister adds that the country is going to need to revamp its approach to trade if the United States’ tariff attacks stick around long-term.
Some of Carney’s suggested improvements include “Breaking down internal trade barriers, so we can have one Canadian economy, not thirteen. Making Canada more productive and competitive. Building things in this country again. Millions more homes. Building clean and conventional energy. Building more public transport. More mines, more assembly lines. Building new trade corridors with reliable partners.” He adds that earlier this week, he spoke with leadership of these ‘reliable partners’ such as Mexico, Germany, France, the United Kingdom, and the European Commission, who he assures all oppose the American approach.
Immediately following the federal election on April 28th, Carney says the new Canadian Prime Minister and Donald Trump will sit down to find areas of common ground and renew their economic and security partnership.
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The day after President Donald Trump’s tariffs announcements, Conservative Leader Pierre Poilievre said that if elected, his first day in office he wants to talk with Trump about negotiating a new free trade agreement as quickly as possible. In the meantime, no counter tariffs from Canada will be removed until the United States does the same. Poilievre suggests he will be able to convince the President that it is the best interest of the U.S. to make a deal. He says, “Because we will use all the proceeds of that deal, all of the economic benefits that flow into the federal coffers to massively rebuild our military, so we can carry our weight and keep our continent safe. This will create a powerful incentive for Americans to say yes, but of course there is no guarantee with Trump.” That’s why Poilievre says he would make it clear to the President that any commitments made on defence and on border cooperation would only continue as long as he holds up his side of bargain, giving Canada some leverage.
Poilievre also stated that a Conservative government would eliminate the federal sales tax on Canadian-made automobiles, giving a break to buyers while bolstering the industry.
He urges provincial governments to do the same. Poilievre adds that if the Conservative party is elected on April 28th to form the next government, he will set up a $3-billion fund for businesses affected by tariffs to offer loans to help keep workers employed.
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Federal NDP Leader, Jagmeet Singh says Pierre Poilievre announcing today (Thurs) he would remove the GST from Canadian-made vehicles is actually something the NDP announced a week ago. He adds that both the Conservative and Liberal Leaders have refused to improve Employment Insurance to help workers at risk of being laid off as a result of the tariffs, so Singh would increase the benefit rate, eliminate the one week waiting period and extend the coverage duration. Singh says, “This election is about who stands with you when the pressure’s on, and we’ll always put working and middle-class Canadians ahead of billionaires and corporate lobbyists.”
The NDP Leader also announced Canada Victory Bonds as a nation-building investment. These 5 and 10-year Canada Victory Bonds would be secure, tax-free savings bonds to help rebuild the economy and to resist Trump’s attacks. Every dollar raised would be dedicated entirely to public infrastructure, not general revenue. Singh says, “Canadians are already taking a stand- buying local, cancelling U.S. trips, and calling out Trump’s bullying, With Victory Bonds, we’re giving them another way to act, to invest directly in the fight for our economy and our future.”
