Tariff Tensions: Carney Challenges Trump's Trade Strategy

Canadian Prime Minister Mark Carney criticized US President Donald Trump's decision to impose a 25% tariff on auto imports, labeling it a 'direct attack' on Canada, and highlighting its impact on American consumer confidence. Carney pledged support for Canadian auto workers and prepared to discuss retaliatory measures.

Canadian Prime Minister Mark Carney has taken a strong stance against US President Donald Trump's recent imposition of a new 25% tariff on auto imports, calling it a 'direct attack' on Canada. Carney warned that these tariffs not only threaten Canadian jobs but also erode American consumer confidence, which is currently at a multi-year low.

The move, announced by Trump as 'permanent', has prompted Carney to contemplate retaliatory actions. He plans to convene with his Cabinet to address the impact of the tariffs on Canada's critical auto sector, which employs over 600,000 individuals. In response, Carney revealed a USD 1.4 billion strategic fund to safeguard Canadian jobs.

With tensions escalating, the relationship between Canada and the United States has increasingly become strained. Further exacerbating the situation, Trump has labeled the tariffs as 'Liberation Day', whereas Carney sees it as harmful to workers on both sides. The situation underscores a widening rift that could impact 25% of trade conducted via the Ambassador Bridge, a crucial economic lifeline for both nations.

(With inputs from agencies.)