Breaking News: Canada Cuts Ties with US over Tariffs

“The old relationship we had with the United States based on deepening integration of our economies and tight security and military cooperation is over,” Carney said during a press conference in Ottawa.

The announcement followed a cabinet meeting focused on trade strategy in response to US president Donald Trump’s newly announced 25% tariffs on all imported vehicles and auto parts.

“What exactly the United States does next is unclear, but what is clear is that we as Canadians have agency,” Carney said. “We are masters in our own home.”

Carney described the tariffs as a “very direct attack” and warned they would have wide-reaching consequences, prompting Canada to significantly reduce its dependence on US trade.

“We will need to dramatically reduce our reliance on the United States. We will need to pivot our trade relationships elsewhere,” he said. “We will need to do things previously thought impossible at speeds we haven’t seen in generations.”

The tariffs, which apply to both vehicles and parts, are set to go into effect on April 3 and May 3, respectively. In the hours following Trump’s announcement, major US automakers saw sharp drops in share prices, reflecting fears of broader disruption in the automotive sector.

Carney had previously hailed France and the United Kingdom as “long-standing and reliable partners, friends and allies of Canada” and visited those two countries in his first trips abroad as prime minister.

Trump and Carney are expected to speak by phone in the coming days, following outreach from the White House on Wednesday night.

Carney’s government is preparing a response to Trump’s tariffs, which he said targeted five key Canadian sectors: autos, lumber, steel and aluminum, semiconductors, and pharmaceuticals. While Canada’s strategy has not yet been released, Carney said retaliatory trade measures would follow an expected US announcement on April 2.

“This is a negotiation,” Carney said. “It doesn’t make sense to tip your hand and say what you’re going to do going forward.”

The prime minister’s stance is similar to that of Mexican President Claudia Sheinbaum, who intends to unveil Mexico’s tariff reaction after April 2. The three countries are founding members of the United States-Mexico-Canada Agreement (USMCA), which Carney claims is being directly harmed by the proposed tariffs.

Carney emphasized the need for a long-term response that focuses on strengthening the Canadian economy. “We can deal with this crisis best by building our own strength right here at home,” he said.

“There is no silver bullet, there is no quick fix,” he added. “I reject any attempts to weaken Canada, to wear us down, to break us so that America can own us.”