Canada to hit back as US car tariff triggers fury; Germany, France, Japan plan retaliation

Canada's prime minister warned that Trump’s policies had fundamentally changed the US-Canada relationship, making a return to previous economic and security cooperation unlikely.
US-Canada border
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Updated on
2 min read

Trump's car-tariff plan has unleashed a wave of shock and outrage around the globe, particularly in major world economies and America's allied countries. Canada’s prime minister has declared that the country’s long-standing close ties with the United States have come to an end, as French, Japanese and German governments strongly condemned Trump’s newly announced car import tariffs. Some countries have hinted at countermeasures.

Canada feels the most outrage

Prime Minister Mark Carney warned that Trump’s policies had fundamentally changed the US-Canada relationship, making a return to previous economic and security cooperation unlikely, regardless of any future agreements.

“The deep economic integration and close security and military coordination we once had with the US is now a thing of the past,” Carney told reporters.

The prime minister criticised the tariffs on automobile imports, labelling them unjustified and a violation of existing trade pacts. He announced plans to consult provincial leaders and business representatives to coordinate a response, with countermeasures expected soon.

“We will not stand idly by,” Carney said. “Our response will be strong and targeted—designed to have a significant effect on the US while minimising harm to Canada.”

New car tariffs from April 3

Trump’s decision, revealed on Wednesday, will see a 25% duty imposed on vehicles and car parts entering the US starting 3 April. Experts warn this move could dampen production, drive up consumer costs, and escalate global trade tensions.

Last year, the US imported nearly $475 billion worth of automobiles, with major suppliers including Mexico, Japan, South Korea, Canada, and Germany. European manufacturers alone exported over 7.5 lakh cars to America.

Harm to all economies

French president Emmanuel Macron voiced his opposition, warning that tariffs disrupt supply chains, increase inflation, and cost jobs. He emphasised that such measures harm both the US and European economies. Paris will collaborate with the European Commission to seek a reversal of Trump’s decision.

Germany also criticised the move, with chancellor Olaf Scholz stating that Washington’s approach would ultimately harm everyone by reducing prosperity. Finance ministers from France and Germany indicated that Europe would retaliate, with Berlin promising a firm response.

Polish prime minister Donald Tusk urged a pragmatic approach but insisted that Europe would not yield under pressure. European Commission president Ursula von der Leyen argued that tariffs would burden businesses and consumers alike, reaffirming the EU’s commitment to defending free trade.

UK response subdued

British prime minister Keir Starmer expressed deep concern over the tariffs, saying his government would maintain a practical and strategic stance. While the UK does not seek a trade conflict, he stressed that all options remained open.

In Canada, officials are considering levying duties on exports such as oil and potash in retaliation. “We will take every necessary step to safeguard our industries and workforce,” Carney stated, reinforcing that the previous era of economic and security collaboration with the US was over.

South Korea, China miffed

Other countries also signalled their disapproval. South Korea pledged an emergency response by April, while China condemned the move as a breach of global trade regulations, arguing that protectionist policies were not a solution.

Japan, which has made substantial investments in the US, questioned the logic of imposing the same tariff rates on all nations. Prime Minister Shigeru Ishiba stated that Tokyo was evaluating all possible countermeasures.

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