On social media, the US President Donald Trump made a rather audacious declaration. On foreign-made automobiles, he will double down with a new 25% across-the-board tariff to go into effect at midnight Thursday. The announcement immediately shook up Canada’s political arena, causing quick reactions from the Canadian Prime Minister, federal ministers, and industry followers.
Responding to the newly imposed tariffs, Prime Minister Mark Carney promised to respond “with purpose and with force”. He went beyond that in underlining Canada’s determination to stand up for its own interests. As they do here, these tariffs strike at the very heart of Canada’s economy, threatening to make millions of Canadians worse off. Candace Laing, president of the Canadian Chamber of Commerce, praised Wednesday’s announcement. This heralds what she said is the truth Canadians have been living for the past several months.
Conservative leader Pierre Poilievre held a press conference in downtown Toronto the day after the federal announcement to denounce it. There, he laid out his party’s strategy for fighting the tariffs on. He made a point of saying that he needed to take care of Canadian workers. Simultaneously, he pledged to build “the world’s most robust G7 economy.” Besides the US, Poilievre recently announced a list of 60 countries that would be subject to new “reciprocal” tariffs. Interestingly, Canada isn’t on that list.
The US tariffs are predicted to have a spillover effect outside the automobile industry. Currently energy and potash are tariffed 10% lower. A 25% tariff on Canadian steel and aluminum is still in place. This development has only served to further complicate trade relations between the two countries.
…with the new narrow Republican US House of Representatives. They are not likely to even take up any bills that would repeal these tariffs. This combination of inaction means the tariffs are likely to be here as long as the eye can see. Poilievre criticized President Trump’s policies, labeling him an “arsonist” for allegedly “setting fire to the economy — his own economy, and ours as well.”
The political fallout in Canada has been growing more acute, as each political leader fights to respond to the economic damage that the tariffs are bringing. New Democratic Party leader Jagmeet Singh highlighted the need for measures to support workers affected by the tariffs during a campaign stop in Winnipeg. Yves-Francois Blanchet, the leader of the Bloc Quebecois, suggested Canada should respond with counter-tariffs. He explained the importance of these tariffs being “surgically selected” to safeguard Canada’s “delicate” economy.
Even some of the people arguing for and against the tariffs have recognized that, as these discussions played out, these tariffs could radically reshape the international trading order. The existing North American Free Trade Agreement (CUSMA) is set for review in 2026, and many are questioning how these new tariffs will influence upcoming negotiations.
Our federal election in Canada is coming up quickly on April 28. The US tariffs are creating a dark cloud over the event. Candidates need to show they are prepared to address the bottom line domestic priorities. At the same time, they need to operate in the increasingly challenging climate created by US trade policies.