Ottawa – Arabs Canada News

Canadian Prime Minister Mark Carney announced on Friday the imposition of a 25% retaliatory tariff on cars imported from the United States, in response to recent U.S. actions targeting the Canadian automotive sector.

Carney said during a press conference in Ottawa:

“If the United States will not lead the global trading system, then Canada will. We will not accept our national industry being targeted without a response.”

He confirmed that the Canadian government is working with international partners to coordinate a response to what he described as “harmful and unilateral decisions” that threaten the stability of global markets and increase inflationary pressures on Canadian consumers.

Economic response and political escalation

Carney's remarks came days after U.S. President Donald Trump announced a 25% tariff on automotive imports from Canada and several other trading partners, a move that has raised widespread concern in Canadian economic circles.

The new Canadian tariffs cover cars and light trucks manufactured in the United States, in a step that the government described as “necessary to protect the Canadian industry and jobs in Ontario and Quebec.”

The Conservatives respond: Lower the tax on Canadian cars

In contrast, Conservative Party leader Pierre Poilievre announced that if he wins the election, he will abolish the Goods and Services Tax (GST) on cars manufactured in Canada, in an attempt to stimulate local consumers and boost purchasing power.

Poilievre said during an election rally in Winnipeg:

“Instead of imposing new tariffs, we are reducing taxes and giving Canadians a reason to choose local production.”

Background:

These developments come amid rising trade tensions between Ottawa and Washington following the Trump administration's announcement of a broad package of tariffs on traditional trading partners.

The automotive industry is one of the most sensitive sectors in economic relations between Canada and the United States, as it relies heavily on cross-border supply chains that provide hundreds of thousands of jobs in both countries.