How US-Canada trade war has strengthened PM Mark Carney’s position

With US President Donald Trump announcing 25 per cent tariffs on auto imports, Canadian Prime Minister Mark Carney has said that Canada will respond with its own trade actions

carney-canada-us-afp Leader of the Liberal Party of Canada Mark Carney gives a speech to his supporters during a rally at the Grand Quay of the Port of Montreal | AFP

The ongoing trade war between the United States and Canada has upended Canadian politics like never before. And it seems to have handed the Liberal Party a lifeline.

US President Donald Trump announced 25 per cent tariffs on auto imports. Earlier, he placed 25 per cent tariffs on Canada's steel and aluminium and is threatening tariffs on all Canadian products on April 2.

With Trump declaring a trade war on Canada and calling for the country to become the 51st US state, the Canadians seem to have rallied behind new PM Mark Carney. The former central banker replaced Justin Trudeau as Canada's leader and the head of the Liberal Party earlier this month.

The popularity of the Liberals, who were looking down the barrel electorally, has soared after Trump kicked off the trade war and challenged Canada’s sovereignty.

With Carney taking a strong stance against the US amid the trade war, experts say that people are looking up to him to steer the nation to safety in these troubled times.

Incidentally, Carney will be embarking on a five-week campaign after calling an early election on April 28. He has urged the Canadians for a clear and strong mandate given "the biggest crisis in our lifetimes".

Clear that US is no longer a reliable partner’: Canadian PM Mark Carney

Amid the ongoing trade war between the US and Canada, Carney said that the United States is no longer a reliable partner and that Canada will need to “dramatically reduce reliance” on its neighbour.

"It is clear that the United States is no longer a reliable partner. It is possible that, with comprehensive negotiations, we will be able to restore some trust, but there will be no turning back. We will need to dramatically reduce our reliance on the United States. We will need to pivot our trade relationships elsewhere."

Carney said that Canada will respond if Trump imposes the new auto tariffs, with its own trade actions, but did not elaborate.

Trump had earlier announced 25 per cent tariffs on Canada's steel and aluminium and is threatening tariffs on all Canadian products (and on other trading allies) on April 2.

Carney, who has not spoken to Trump since becoming Canada's new PM, said the US president reached out on Wednesday night to schedule a call. He said that he would speak with Trump soon, but added that the latter has to respect Canada's sovereignty.

Canada, along with Mexico, Japan, South Korea and Germany are the biggest suppliers of automotive imports to the US. Vehicles are the second-largest Canadian export by value, after oil, of which more than 90 per cent is exported to the US.

Also, more than 75 per cent of Canada's exports go to the US.

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