Trade Tensions: Canada's Auto Industry at Risk Amid US Tariffs

Canadian Prime Minister Mark Carney criticized US President Donald Trump's auto tariffs as a 'direct attack' on Canada. The trade conflict impacts American consumer confidence and Canadian jobs. Carney pledged support for Canadian workers and established a strategic fund while awaiting further details on Trump's executive actions.

Canadian Prime Minister Mark Carney confronted US President Donald Trump's decision to impose a 25% tariff on auto imports, calling it a 'direct attack' on Canada. The escalating trade conflict has contributed to a decline in American consumer confidence, now at its lowest in years.

Carney responded by setting up a $1.4 billion 'strategic response fund' to protect Canadian auto jobs and expressed his commitment to defending Canadian industries and workers. Autos are Canada's second-largest export, crucial to the nation's economy with significant employment implications.

The tension highlights a shift in US-Canada relations. Ontario Premier Doug Ford warned of potential shutdowns in the auto industry, while Trump maintains an aggressive stance. Carney is yet to speak with Trump since taking office, but he anticipates a conversation soon to address these pressing trade issues.

(With inputs from agencies.)