Liberal Leader Mark Carney has paused his campaign and is back in Ottawa on Thursday to deal with the fallout from U.S. President Donald Trump’s proposed auto tariffs, which would wallop the industry in Canada.
Speaking from the Oval Office on Wednesday, Trump delivered a blow to the cross-border auto trade, vowing to bring in a new 25 per cent tariff on finished vehicles imported into the United States, starting next week.
Hundreds of thousands of Canadians jobs are connected to the auto sector — the largest manufacturing industry in Canada and second-largest source of exports to the U.S. after oil.
In a social media post Thursday, the president threatened to further punish Canada and the European Union with duties “far larger than currently planned” if they retaliate against his auto tariffs
Carney, in his capacity as prime minister, has convened the committee on Canada-U.S. relations and national security on Parliament Hill to map out a response and is holding a media availability, which has been delayed until 2 p.m.
He suggested late Wednesday that Canada will respond in some way.
“This is a violation and he has betrayed our trade agreement,” Carney said Wednesday. “A response will happen soon. I won’t say more. When it comes to our options, we do have options.”
Carney, who was sworn in as prime minister nine days before calling an election, has not talked to Trump yet. He has said he is open to a conversation if the president, who repeatedly taunts that Canada should become the 51st state, respects Canada’s sovereignty.
Minister of International Trade and Intergovernmental Affairs Dominic Leblanc has spoken to Commerce Secretary Howard Lutnick twice since Trump’s announcement, according to Radio-Canada sources.
Ontario Premier Doug Ford told reporters he’s also spoken to Lutnick and was told Canadian-made vehicles with 50 per
cent or more American parts will not face tariffs.
“I had a good conversation with the prime minister, he agrees 100 per ent we need to retaliate,” he said Thursday afternoon. “The prime minister and myself agree let’s not do this until April 2, lets see what’s coming.”
Ford said there will be a virtual call with the premiers Friday.
Before Trump’s announcement Wednesday, Carney had promised a $2-billion package to protect Canada’s auto industry if elected April 28. He announced the plan while in Windsor, Ont., the heart of Canada’s auto industry.
Conservative Leader Pierre Poilievre, who is heading to British Columbia for Day 5 of the campaign, said Trump needs to “knock it off” with his trade war.
“We had the best trade relationship in the world, in the history of the world, before these unnecessary interruptions struck our economy, and they’re hurting both sides of the border,” he told reporters Wednesday evening.
NDP Leader Jagmeet Singh called Trump’s latest threats a “full frontal attack on autoworkers.” Speaking in Windsor, Singh promised that if elected, the NDP would make sure company owners who took public money to build up Canada’s auto sector don’t “strip it for parts.”
“Not a single piece of equipment should be taken out of our companies here in this country,” he said. “Canadians invested in that equipment.
It’s not clear how he would achieve that, but Singh said the NDP would “use every legal tool available.”
NDP Leader Jagmeet Singh, speaking in Windsor, Ont., on Day 5 of the election campaign, also said he wants federal government vehicles — including for Canada Post and the RCMP — to be Canadian-made.
Singh shifted his road plan to be in the southern Ontario city Thursday. He meet with Unifor leaders in the auto industry and attend a shift change at a Stellantis plant. The change in schedule — the NDP leader was supposed to be in London, Ont. — came in response to Trump’s tariff announcement.
Bloc Québécois Leader Yves-François Blanchet called for Parliament to return the same week of the election and for all parties to support a wage subsidy to enable businesses to keep their workers employed throughout the crisis.
“Every week, Donald Trump adds to his list of reprehensible economic attacks that will hit Quebec on April 2. Let’s not wait any longer to reassure our businesses and workers,” he said in a statement Thursday.
- This Sunday, Cross Country Checkup is asking: What impact is the trade war having on your job security? How does that affect your vote? Leave your comment here and we may read it or call you back for our show on March 30
Earlier this month, and before the election call, the government had announced a more than $6-billion aid package for businesses impacted
It also relaxed the rules around a program that allows employees to receive partial EI benefits while working reduced hours. The government said that will increase access to the program and lengthen the time that those benefits are typically available.
Carney is expected to return to the campaign trail Thursday afternoon after the morning meeting.
