[WORLD] Canada's prime minister has said that the era of close connections with the United States "is over," as nations from Tokyo to Berlin to Paris severely slammed Donald Trump's sweeping tariffs on auto imports, with some threatening retaliation. Mark Carney cautioned Canadians that Trump had irreversibly transformed relations and that, regardless of future trade agreements, there would be "no turning back".
The tensions represent a substantial break from decades of North American economic cooperation, particularly since the 1994 North American Free Trade Agreement (NAFTA), which was renegotiated in 2020 as the US-Mexico-Canada Agreement (USMCA). Analysts argue that Trump's latest move contradicts the spirit of the agreement, increasing concerns about its long-term viability.
He told reporters: “The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over.” The prime minister called Trump’s car tariffs “unjustified”, and said they were in breach of existing trade deals between the countries.
Industry leaders have expressed alarm over the potential fallout, particularly for Canada’s auto sector, which employs hundreds of thousands of workers and relies heavily on cross-border supply chains. The Canadian Vehicle Manufacturers’ Association warned that tariffs could disrupt production and lead to job losses on both sides of the border.
Carney stated that he would speak with province premiers and industry leaders on Friday to arrange a coordinated reaction, with retaliatory actions expected next week.
"Our response to these latest tariffs is to fight, is to protect, is to build," Carney said reporters. "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."
Trump declared on Wednesday that he would put a 25% tax on vehicles and auto parts sent to the United States beginning April 3, a move that experts fear will reduce manufacturing, raise costs, and trigger a worldwide trade war.
The decision comes amid growing concerns over the fragility of global supply chains, still recovering from pandemic-era disruptions. Economists warn that additional trade barriers could exacerbate inflationary pressures, particularly in the automotive sector, where price increases are likely to be passed on to consumers.
Last year, the US imported about $475 billion (£367 billion) worth of cars, the majority of which came from Mexico, Japan, South Korea, Canada, and Germany. European automakers alone sold almost 750,000 vehicles to American drivers. Emmanuel Macron, France's president, said on Thursday that he had warned his US counterpart that tariffs were a bad idea. "They disrupt value chains, cause inflation, and destroy jobs. So it's bad news for the US and European economies," he remarked.
Macron’s remarks reflect broader European frustration with what many see as a return to protectionist policies under Trump. The EU has long positioned itself as a champion of multilateral trade, and officials fear that escalating tensions could weaken the global economic order. Paris would collaborate with the European Commission on a reaction designed to persuade Trump to reconsider, he stated. Officials in Berlin also stated that the commission would defend free trade as the basis for the EU's economy.
Germany's chancellor, Olaf Scholz, bluntly condemned Trump's move as misguided, saying Washington seems to have "chosen a path at whose end lie only losers, since tariffs and isolation hurt prosperity, for everyone". Eric Lombard, France's finance minister, described the US president's plan as "very bad news" and said the EU will be obliged to hike its own duties. His German colleague, Robert Habeck, promised a "firm EU response. We will not take this lying down," he told me.
Donald Tusk, Poland's prime minister, stated that Europe would approach the US with common sense but "not on our knees". Good transatlantic relations are "a strategic matter" that must endure more than one prime minister and president, he stated. The European Commission's president, Ursula von der Leyen, condemned the action as "bad for businesses, worse for consumers," because "tariffs are taxes." She stated that the group would continue to pursue diplomatic solutions while maintaining its economic interests.
Keir Starmer, the British prime minister, said the levies were "very concerning" and that his government will respond in a "pragmatic and clear-eyed" manner. This country "does not want a trade war, but it's important we keep all options on the table", according to him. Canada could levy excise tariffs on oil, potash, and other commodity exports. "Nothing is off the table to defend our workers and our country," Carney said, adding that the old economic and security relationship between Canada and the United States had ended.
South Korea said it would implement a comprehensive emergency response to Trump's proposed measures by April. According to China's foreign ministry, the US approach violated World Trade Organization norms and was "not conducive to solving its own problems". Its spokesperson, Guo Jiakun, stated, "No country's development and prosperity are achieved by imposing tariffs."
The Japanese prime minister, Shigeru Ishiba, said Tokyo was putting “all options on the table”. Japan “makes the largest amount of investment to the US, so we wonder if it makes sense for Washington to apply uniform tariffs to all countries", he said.
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