*by Steve Ward 🇨🇦* U.S. President Donald Trump has escalated his trade

*by Steve Ward 🇨🇦*
U.S. President Donald Trump has escalated his trade and tariff conflict with Canada and other nations. Starting April 2, the United States will impose a 25% tax on foreign-made cars imported into the U.S. In a characteristic ambiguous statement, he declared, "We're going to charge countries for conducting business in our country and taking our jobs, taking our wealth.

" The Executive Order was signed this afternoon. Clarification is needed regarding what constitutes "foreign-made cars," as the auto industries in Canada, the U.S., and Mexico are deeply intertwined, with parts sourced from all three nations. It's uncertain whether the tariffs will apply exclusively to car parts or entire vehicles. Even if they target only parts, the tariffs would still be detrimental to Canada. If the 25% tariffs take effect on April 2, it will spell significant trouble for Canada, as most vehicles manufactured here are destined for the U.S. market. The U.S. relies heavily on vehicle imports from Canada and elsewhere. Consequently, Trump's tariffs would have a swift negative impact on the vehicle market in the U.S., affecting auto workers and consumers alike. Industry insiders predict that if the tariffs are enacted on April 2, Canada's auto sector could face an immediate shutdown, echoing the disruptions seen during the COVID-19 pandemic.

Update: Trump's Executive Order is now available online: - Cars, SUVs, and light trucks will incur the new tax starting at midnight on April 3, and this will be permanent. - A temporary reprieve for auto part imports, which will face tariffs at an unspecified date, no later than May 3. - Indefinite exemptions for auto parts manufactured under the Canada-United States-Mexico Agreement (CUSMA). - Shares of American automakers fell in after-hours trading, with Ford Motor down 2%, General Motors by 2.3%, and Stellantis by 3%. Carney, foreseeing today's developments, began his campaign day in Windsor, the heart of Canada's auto industry, announcing a $2 billion fund to protect jobs in the sector. He expressed his intention to "build an All-In-Canada auto manufacturing network" on social media. Later in Kitchener, following a meeting with Unifor president Lana Payne, Carney reacted to Trump's Executive Order by stating, "We will defend our workers, our companies, and our country, and we will do it together." He outlined measures taken last week aimed at mitigating the impact of Trump's tariffs ahead of the election, such as simplifying claims for employment insurance and allowing companies to defer income-tax payments for liquidity. "This is a violation and a betrayal of our trade agreement," Carney remarked, adding, "This is a direct assault. A response will come soon. I can't disclose more right now, but we do have options."

He expressed hopes to speak with Trump soon. Tonight, Carney will return to Ottawa and spend tomorrow meeting with the Canada-U.S. Relations Cabinet to strategize next steps. Despite being in caretaker mode, the government can still implement tariffs or other retaliatory actions in response to Trump's Executive Order. Canadians can be assured that, even during an election period, there is leadership ready to act on the nation's behalf. Ontario, home to Canada's auto sector, will bear the economic impact of Trump's tariffs the hardest. Premier Doug Ford remarked that the tariffs serve to divert attention from the scandal surrounding leaked war plans. He plans to consult with other provincial premiers before determining how to proceed, aiming for a "Team Canada approach" to respond on April 2 when the tariffs are set to be implemented. "We can either roll over as a country while he tramples us, or we can endure some pain and fight like we've never fought before. I prefer the latter," Ford stated. He further mentioned a conversation with Prime Minister Carney, emphasizing their agreement on the need for Canada to remain firm, strong, and united. Ford supports the federal government in preparing retaliatory tariffs to show that Canada will not back down.

Trump's actions today are disheartening, and if the tariffs come into effect on April 2, both the auto sector and workers on both sides of the border will face significant economic hardships. Trump's ongoing obsession with tariffs is becoming increasingly perilous—his latest inexplicable decision threatens the economies of both nations, the stock market, and workers supporting families and financial obligations. Unfortunately, Trump and his tariffs are back again . #Trump #Tariffs #AutoSector #Carney #CanadaElection2025 #TradeWar #Election2025 #cdnpoli