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By Kate Plummer
Senior US News Reporter
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The Canadian government has vowed to retaliate after President Donald Trump imposed tariffs on the country—a move that Canadian Prime Minister Mark Carney described as a "direct attack."
Why It Matters
Trump has made tariffs a key component of his economic offering in his second administration, positing that they will protect the domestic economy and enable the U.S. to haggle for better trade terms for the U.S.
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As such, he has put tariffs on Canada, Mexico and China, including a 25 percent tariff on Canadian imports and a 10 percent tariff on Canadian energy imports.
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However, concerns about a trade war are unsettling markets and creating fears of a recession in the U.S. Some Canadian customers are boycotting American products and Canada has barred Tesla vehicles from being eligible for the county's electric vehicle rebate because of the tariffs.
What To Know
Trump said on Wednesday that he plans to place 25 percent tariffs on auto imports from April 3. "This will continue to spur growth," Trump said. "We'll effectively be charging a 25 percent tariff."
Speaking to reporters in Kitchener, Ontario, Carney said he would convene a cabinet meeting on Thursday to coordinate a response to tariffs Trump imposed on the country, which he called "a direct attack."
"We will defend our workers, we will defend our companies, we will defend our country, and we will defend it together," he said.
He added: "It will happen soon ... we have options. We can introduce retaliatory tariffs."
What People Are Saying
Ontario Premier Doug Ford also told reporters the government intended to "inflict as much pain as possible to the American people" without harming Canada.
"We have two options here—we either roll over as a country and he runs us over 15 times and gets what he wants, or we feel a little bit of pain and fight like we have never fought before. I prefer the latter—I believe in fighting," he said.
Writing on Truth Social in the early hours of Thursday morning, Trump reacted to the brewing discontent. He said: "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!"
What Happens Next
Canada announced a package of retaliatory tariffs worth C$155 billion but has not announced how and when they will be imposed.
Meanwhile, Trump has announced another round of tariffs will go into effect on April 2, aimed at countries that charge the United States import duties.
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