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Canadian Prime Minister Mark Carney says the era of close economic and security ties with the U.S. is over following President Trump’s new 25% tariffs on imported cars and parts. Speaking after a cabinet meeting in Ottawa, Carney called for a fundamental reimagining of Canada’s economy and vowed retaliatory tariffs designed for “maximum impact” He declared the 1965 Canada-US Auto Pact effectively dead, saying Canada must now adapt its auto sector to survive. Carney stressed the need to build a more self-reliant economy, rethinking trade relationships and strengthening domestic control in response to the shifting U.S. stance.
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