Mark Carney said Thursday that the commercial measures adopted by the administration of Donald Trump “fracture the global economy” and that the “Global Trade System anchoring in the US” has ended. In this sense, the Canadian Prime Minister has announced 25% tariffs on US cars.
Carney has added that the “former relationship of continued deepening of integration with the United States has ended” and that, Although “it is a tragedy, it is also the new reality.” In retaliation for the entry into force on Thursday of the tariffs to the automobile sector, Canada will impose 25 % tariffs to the imported vehicles from the US, which do not fit the T-MEC standards. The measure will not affect those from Mexico.
The Canadian government estimates that the new measure will report about 8,000 million dollars (7.2 million euros) that will “directly” go to workers affected by tariffs.
The Canadian Prime Minister has also stressed that Trump’s actions are “A clear violation of trade agreements” of the Free Trade Agreement T-MEC between Canada, the United States and Mexico that the US president himself signed during his first term (2017-2021).
Specifically, Carney has pointed out that tariffs on the automobile sector, the most integrated between the three American countries since 60 years ago, USA and Canada signed an agreement to eliminate their taxes. “That era has ended unless the United States and Canada agree a new global approach,” he explained.
The words of the Canadian leader contrast with those pronounced this Thursday by the president of Mexico, Claudia Sheinbaumwhich positively valued Trump’s decision not to impose new tariffs on his T-MEC partners and said the tripartite trade agreement “survived.”
According to Carney, the actions announced on Wednesday by Trump “will fracture the global economy and adverse global economic growth adversely. The global economy is fundamentally different from what it was yesterday. “
“The global economic system anchored in the United States, on which Canada has depended since the end of World War II, was a system that, although it was not perfect, has helped the prosperity of our country for decades. It has ended,” he said with a serious gesture.
Before the new reality, Canada “will fight each of these tariffs” before the courts and international organizations, has warned Carney in addition to “carefully calibrated tariffs.” Also, The country will increase its relations with other “reliable” countries.
Carney has revealed that he spoke with the German chancellor, Olaf Scholz, with whom he tried “the importance of reliable partners working together to protect transatlantic security and the deepening of economic ties.” “The prime minister shared his plan to fight unjustified commercial actions of the United States against Canada, protect Canadian workers and strengthen Canada’s economy,” his office said in a statement.
