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Canadian Prime Minister Mark Carney on Wednesday called U.S. President Donald Trump's auto tariffs a "direct attack" on the trade war, saying the move has sent American consumer confidence to an all-time low. Trump said in an announcement that the tariffs would be 25 percent and would be "permanent."

 

Canadian response and defence

"This is a very direct attack. We will defend our workers, companies and country," Carney said. He said he would not take any retaliatory action without seeing the details of Trump's order, but called the decision unjust. Carney also said he would leave his re-election campaign on Thursday and travel to Ottawa, where he will chair a meeting of a special cabinet committee on relations with the US.

 

Importance of the auto industry to Canada

Carney also announced he would create a US$1.4 billion "Strategic Response Fund" to protect Canadian auto jobs affected by Trump's tariffs. The auto industry is Canada's second-largest export sector, and employs 125,000 Canadians directly, while about 500,000 work in related industries.

 

Trump's decision affects American consumers

Carney said Trump's trade war would also harm American consumers and workers. According to the report, the US consumer confidence index fell by 7.2 points in March, the lowest since January 2021. Carney said, "This trade war is harming American consumers and workers and will do more harm in the future."

 

Impact on the auto industry and Canada–US relations

Carney stressed that the relationship between the US and Canada could be seriously affected, as a large part of the trade between the two countries takes place through the Ambassador Bridge. This bridge carries $ 98 billion worth of goods trade between the two countries, reaching $ 281 million per day. He said that if these tariffs are implemented, it is a danger signal for business and jobs.


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