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

The prime minister 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

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.

“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.”

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 Minister 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.

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)

From the homepage

India warns of ‘likely humanitarian consequences’ after US H-1B visa fee hike

Explained: H-1B visas, Indians, and the immigration discourse in the US

Malayalam superstar Mohanlal honoured with the Dadasaheb Phalke Award 2023