Canadian Prime Minister Mark Carney said late Wednesday that the 25% tariffs being imposed on vehicles imported into the U.S. are a "direct attack" on Canada and vowed to take actions to protect Canadian autoworkers.
Carney stated that government officials would meet on Thursday to discuss possible retaliatory tariffs in the wake of President Donald Trump's announcement.
"We are going to stand up for Canada," he said.
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Early Thursday, President Trump hinted that more tariffs could come, depending on Canada's response.
"If the European Union works with Canada in order to do economic harm to the USA, large-scale tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!" he said.
According to the International Trade Administration, the U.S. imported $244 billion in passenger vehicles in 2024. Canada was the fourth-largest exporter of vehicles into the U.S., behind Mexico, Japan, and Korea.
Canada, however, is by far the biggest importer of vehicles made in the U.S., as the U.S. exports $23 billion in passenger vehicles into Canada, which is $16 billion more than Germany.
The U.S., Canada, and Mexico have largely integrated their automaking industries, with numerous American automakers owning plants in all three nations.
"This is a direct attack against" Canadian workers, Carney said. "We will defend our workers."
Carney said that it is enabling Canadian companies to delay tax payments.
The prime minister also said that Canada would take $2 billion from its retaliatory tariffs and use it to support "made in Canada" efforts, reducing its dependence on goods imported from the U.S. and elsewhere. But Carney acknowledged that its "made in Canada" efforts would "take time."
Carney became Canada's prime minister earlier this month and nearly immediately called for a snap election for April. Carney had until this October to call for a new election.
