The Blubber

U.S. President Donald Trump signed an executive order on Wednesday to impose 25 percent tariffs on all automobile imports to the United States starting next week, further escalating his global trade war and sending shockwaves through stock markets.

Prime Minister Mark Carney condemned the move as a “direct attack” on Canadian auto workers and vowed to take swift action in response.

“We will defend our workers. We will defend our companies. We will defend our country. And we will defend it together,” Carney stated.

“You know this will hurt us. But by standing together through this period, we will emerge stronger.”

This latest tariff action is the first since the federal election campaign began four days ago. However, Trump’s tariffs and his ongoing threat to annex Canada have quickly become a central issue for many Canadians ahead of the April 28 vote.

Trump announced that the tariffs would take effect on April 2, with duties being collected the following day. He claimed that the move would “continue to spur growth like you haven’t seen before.”

“If you build your car in the United States, there’s no tariff,” Trump said from the Oval Office.

There appeared to be no exemptions for vehicles manufactured under the Canada-U.S.-Mexico Agreement (CUSMA), the trade deal negotiated during Trump’s first term. The North American auto industry is deeply integrated across Canada, Mexico, and the United States.

Under CUSMA, rules of origin stipulate that 75 percent of a passenger car or light truck must be made with North American content to qualify for tariff-free status. Additionally, manufacturers must source 70 percent of their steel and aluminum from North America and comply with labor regulations.

Trump declared that the automobile tariffs were permanent, insisting that automakers would “have to move their parts divisions back to the United States.” He added, “If parts are made in America and a car isn’t, those parts are not going to be taxed or tariffed.”

“For the most part, I think it’s going to lead cars to be made in one location,” Trump said.

The president’s unpredictable trade war has created uncertainty in markets and within the auto sector. Stocks of the Big Three automakers—Stellantis, Ford, and General Motors—all dropped in after-hours trading on Wednesday. Tesla’s stock also saw a decline.

Ontario Premier Doug Ford took to social media, stating, “President Trump is at it again.”