Canadian PM calls Trump’s auto tariffs a ‘direct attack’—How are other global leaders reacting? | World News

Canadian Prime Miner Mark Carney slammed US President Donald Trump’s latest trade move, calling his 25% tariff on auto imports a “direct attack” on Canada. The tariffs, announced Wednesday, mark a dramatic escalation in an already tense trade war. “We will defend our workers. We will defend our companies. We will defend our country,” Carney stated.Carney, who is currently in the midst of an election campaign, said he needs to examine the specifics of Trump’s executive order before announcing countermeasures. However, he reaffirmed that Canada would not back down.
The prime miner will chair a special Cabinet committee on US relations in Ottawa on Thursday. He had previously announced a CA$2 billion ($1.4 billion) “strategic response fund” aimed at protecting Canadian auto jobs. “Canada will be there for auto workers,” Carney said, noting that the industry employs 125,000 people directly and nearly half a million in related sectors.
A trade relationship in crisis

LIVE: my response to Trump’s new tariffs • EN DIRECT : ma réponse aux nouveaux tarifs de Trump https://t.co/DthLtEklwm
— Mark Carney (@MarkJCarney) March 26, 2025
The auto industry is central to Canada’s economy, and the tariffs put at risk a sector deeply integrated with the US market. Ontario Premier Doug Ford, whose province is home to much of Canada’s auto production, warned of devastating consequences.
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“President Trump is calling it Liberation Day. I call it Termination Day for American workers,” Ford said. “I know President Trump likes to tell people, ‘You’re fired!’ I didn’t think he meant US auto workers when he said it.”

President Trump’s tariffs will hurt, but they will not break us.
We will get through this crisis together, because in Kitchener-Waterloo — and right across the country — we are #CanadaStrong. pic.twitter.com/svXA2Y0mre
— Mark Carney (@MarkJCarney) March 27, 2025
Ford cautioned that the tariffs could lead to simultaneous factory shutdowns on both sides of the border, disrupting supply chains that rely on seamless trade between Canada and the US.
Global reactions
Trump’s move has sent shockwaves across the global auto industry. Here’s how other world leaders and industry experts are responding:

Japan’s Prime Miner Shigeru Ishiba expressed his dissatisfaction: “Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for (Washington) to apply uniform tariffs to all countries.”
Tesla CEO Elon Musk warned that the tariffs could drive up costs: “Important to note that Tesla is not unscathed here. The tariff impact on Tesla is still significant.”
United Auto Workers Union President Shawn Fain welcomed the move: “These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country.”
German Car Industry Association President Hildegard Mueller criticised the decision: “The risk of a global trade conflict—with negative consequences for the global economy and jobs—is high on all sides.”
UK’s Society of Motor Manufacturers and Traders CEO Mike Hawes called the move disappointing: “Rather than imposing additional tariffs, we should explore ways to create opportunities for both British and American manufacturers.”

Economic fallout: What’s at stake?
The tariffs come as US consumer confidence reaches a multi-year low. The Conference Board reported a 7.2-point drop in its consumer confidence index, now at its lowest level since January 2021.
Carney pointed to this downturn as proof that Trump’s trade war is already harming Americans. “His trade war is hurting American consumers and workers, and it will hurt more,” he said while campaigning in Windsor, Ontario.Story continues below this ad

The tax hike, set to take effect in April, could mean higher costs for automakers and consumers alike. Vehicles assembled in Canada and Mexico often cross the US border multiple times before reaching final production. Analysts warn that tariffs could lead to increased car prices, job losses, and supply chain disruptions.
Carney lamented the changing dynamics between the two allies. “The relationship between Canada and the United States has changed. We did not change it,” he said, standing against the backdrop of the Ambassador Bridge—the busiest US-Canada border crossing, responsible for $140 billion CAD ($98 billion USD) in trade annually.
In an unusual diplomatic silence, Carney has yet to receive a phone call from Trump since taking office on March 14. “It would be appropriate that the president and I speak given the action that he has taken. I’m sure that will happen soon,” Carney remarked.
(With inputs from AP and Reuters)