Canada separates from the USA: tariffs and new ways for the economy!

Canada separates from the USA: tariffs and new ways for the economy!

The Canadian Prime Minister Mark Carney has described traditional economic and security relationships with the United States as a "history". In today's explanation, Carney said that the United States was no longer a reliable partner. This statement comes in the course of the latest announcements by US President Donald Trump, who wants to raise additional tariffs of 25 percent on auto imports from April 2, 2025. The announcement has caused significant criticism internationally, especially in Canada and Japan, who are considering both countermeasures. Carney is already planning talks with the provinces of the provinces and leading business representatives to react to the effects of these tariffs. In addition, he emphasizes that it makes sense to wait and see because further measures can be expected from the United States.

The tariffs are seen by Carney as a direct attack on Canadian workers, and possible retaliation measures are not excluded. This could also include surcharges to exports of raw materials such as oil or poach to the USA. At a meeting for the discussion of the trade options, he is expected to provide further details about the reaction of Canada.

international reactions to tariffs

The reactions to Trump's customs policy are also critical in other countries. Japan's Prime Minister Shigeru Ishiba has already considered "appropriate measures" to cope with the effects on the important Japanese automotive industry. South Korea's Minister of Industries Ahn Dukgeun reports considerable difficulties for South Korean car manufacturers and announced an emergency plan until April. The EU Commission President Ursula von der Leyen also regrets the tariffs and sees the need for negotiations to protect economic interests. Germany's Federal Minister of Economics Robert Habeck calls for a consistent EU against the new customs policy.

The automotive industry working in the German market sees the United States as a central sales market, which further heats up the protests against the announced tariffs. The VDA, the Association of the Automotive Industry, describes the customs announcement as a "fatal signal for free trade" and warns of negative effects for companies and consumers.

Trump's Protectionist agenda

Donald Trump followed a protectionist economic policy during his term in office, which is characterized by his “America First” approach. The aim of this policy was to strengthen the domestic economy and to make foreign products more expensive with the effect of securing jobs in the US industry. The introduction of punitive tariffs to products from countries such as Canada, Mexico and China has significantly changed the global trade landscape and led to an increase in trade conflicts.

The long -term implications of Trump's politics are already shown in a fragmented trade landscape, strengthened protectionism and changed power conditions in the global economy. Forecasts indicate that Trump's possible return to the White House could again trigger great uncertainties in the global economy. Since Canada is about to choose a parliament, the situation could also have political effects on the country's domestic policy. This escalation in trade relationships can also be attributed to the reserved willingness to invest and the changes in the global supply chains.