Mark Carney says Old US-Canada Relationship 'Is Over' Amid Trump Tariffs

Canadian Prime Minister Mark Carney said the relationship the country has previously enjoyed with the U.S. is now “over” amid ongoing tensions and backlash to President Donald Trump‘s tariff plans.

Carney’s comments came one day after Trump announced he would impose a 25 percent tariff on cars not made in the U.S., starting April 3.

Newsweek has reached out to Carney’s office and the White House for comment via email outside of regular working hours.

Why It Matters

Trump has long risked a major diplomatic crisis with his threats to impose import tariffs against Canada, as well as with his repeated suggestions that the country could become the U.S.’s 51st state.

Canada and the U.S. have historically enjoyed a strong alliance, which Ottawa now appears to be reassessing.

What to Know

Carney said during a Thursday press conference that the “old relationship” between Canada and the U.S. was finished, and that Canada will now work to “dramatically reduce” its reliance on its southern neighbor.

Carney added that Trump’s tariff plans mean Canada must “fundamentally” reimagine its economy, as it can no longer rely on U.S. cooperation.

Trump announced Wednesday his plan to impose 25 percent tariffs next week on auto imports not produced in the U.S.

The move will particularly affect Canada, Japan, South Korea, and countries in the European Union.

Trump said the 25 percent tariff on foreign car imports would encourage companies to build vehicles in the U.S. and help boost the American economy. The White House estimates the tariff plans will raise $100 billion in revenue annually.

There are also fears that tariffs imposed on foreign car parts could increase costs for American consumers and wreak havoc across the auto industry globally.

Trump has already put tariffs on Canada, Mexico and China, including a 25 percent tariff on Canadian imports and a 10 percent tariff on Canadian energy imports.

The president also posted on social media Thursday that if the European Union works with Canada to cause “economic harm” to the U.S., then tariffs “far larger than currently planned” would be placed on both in retaliation.

What People Are Saying

Canadian Prime Minister Mark Carney during Thursday’s press conference: “Our biggest challenge as a country is becoming the most urgent. Over the coming weeks, months, and years, we must fundamentally reimagine our economy. We will need to ensure that Canada can succeed in a drastically different world. The old relationship we had with the United States—based on deepening integration of our economies and tight security and military cooperation—is over.

“What exactly the United States does next is unclear. But what is clear is that we as Canadians have agency. We have power. We are masters in our own home. We can control our destiny. We can give ourselves much more than any foreign government, including the United States, can ever take away. We will need to dramatically reduce our reliance on the United States. We will need to pivot our trade relationships elsewhere, and we will need to do things previously thought impossible, at speeds we haven’t seen in generations.”

President Donald Trump in a Truth Social post on Thursday: “If the European Union works with Canada in order to do economic harm to the USA, large-scale tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!”

Mary Lovely, economist and senior fellow at the Peterson Institute for International Economics, told The Associated Press: “We’re looking at much higher vehicle prices. We’re going to see reduced choice…These kinds of taxes fall more heavily on the middle and working class.”

Shawn Fain, president of the United Auto Workers union, in a statement: “We applaud the Trump administration for stepping up to end the free trade disaster that has devastated working-class communities for decades. Ending the race to the bottom in the auto industry starts with fixing our broken trade deals, and the Trump administration has made history with today’s actions. These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country. It is now on the automakers—from the Big Three to Volkswagen and beyond—to bring back good union jobs to the U.S.”

What Happens Next

Canadians will head to the polls on April 28, making the next few weeks crucial for Carney.

The White House is set to announce an additional wave of reciprocal tariffs on April 2, which Trump has described as “Liberation Day” for the U.S.