Economy

Canadian Prime Minister Condemns Trump’s 25% Auto Tariffs as a ‘Direct Attack’

U.S. President Donald Trump announced a 25% tariff on imported vehicles Wednesday, sparking strong backlash from key trade partners. Canadian Prime Minister Mark Carney condemned the move as a “direct attack” on Canada, warning that the trade war is damaging both Canadian and American economies. He vowed to defend Canadian workers and announced a special Cabinet committee meeting in Ottawa to address U.S. relations.

The tariff, which follows earlier duties on steel, aluminum, and imports from Mexico, Canada, and China, is expected to disrupt global trade. Japan, a major auto exporter, reacted strongly, with Prime Minister Shigeru Ishiba stating that “all options” were on the table for Japan’s response. Meanwhile, Brazilian President Luiz Inacio Lula da Silva criticized Trump’s decision, warning it could drive up prices and fuel inflation.

The U.S. imported $474 billion in automotive products last year, with Mexico, Japan, South Korea, Canada, and Germany as the largest suppliers. Trump had initially granted a one-month tariff exemption for Mexico and Canada, but the new measure signals a further escalation in trade tensions, raising concerns about economic instability and retaliatory actions from affected nations.

 

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