Canadian Prime Minister Carney: ‘We decide what happens here’ in response to Trump comments on Canadian cars

Canadian Prime Minister Carney: ‘We decide what happens here’ in response to Trump comments on Canadian cars

Canadian Prime Minister Justin Trudeau has responded to U.S. President Donald Trump's recent comments about increasing tariffs on Canadian automobile imports. In a statement released on April 25, 2025, Trudeau emphasized Canada's sovereignty and commitment to protecting its economy. "We decide what happens here," Trudeau said, in response to Trump's suggestion that the U.S. does not need Canadian cars.

Trump hinted at raising the 25% tariff on Canadian automobile imports, stating, "I really don't want cars from Canada. So, when I put tariffs on Canada, they're paying 25%, but that could go up in terms of cars" [1]. This comes amidst ongoing trade tensions following the Trump administration's sweeping 25% tariffs on all automobile imports, with partial exemptions for vehicles produced under the Canada-U.S.-Mexico Agreement.

Canadian Prime Minister Trudeau has been vocal about the impact of Trump's trade policies, stating that the relationship between the two countries has fundamentally changed. In response to Trump's comments, Trudeau announced his "Canada Strong" plan, aimed at uniting, securing, and protecting the Canadian economy. "It's time to secure our sovereignty and our economy," Trudeau said, vowing to support Canadian workers in the face of U.S. tariffs [2].

The tariffs have already caused significant disruption across the automotive sector. Goldman Sachs estimates they could reduce Canada’s GDP by 1-4% while adding inflationary pressure of up to 2% [1]. For U.S. automakers like General Motors Co. (GM) and Ford Motor Co. (F), which rely heavily on cross-border supply chains, the tariffs represent billions in potential added costs. The Center for Automotive Research recently projected the auto industry could face costs exceeding $108 billion from the tariffs [1].

Trudeau's response underscores the growing tension between the U.S. and Canada, with both countries taking a firm stance on trade policies. As the trade war continues to escalate, investors and financial professionals should closely monitor the developments, as they could have significant implications for the automotive sector and the broader economy.

References:
[1] https://www.benzinga.com/government/regulations/25/04/44972893/trump-says-us-doesnt-need-canadian-cars-hints-tariffs-could-rise-we-dont-want-your-cars-with-all-due-respect
[2] https://www.tag24.com/world/canada/canadian-prime-minister-threatens-to-respond-with-crushing-force-to-trumps-attacks-3378922