Prime Minister Mark Carney stated on Thursday that his administration is not contemplating imposing additional retaliatory tariffs on American goods amidst the ongoing trade dispute. This decision comes as bilateral discussions on relief show promising progress, despite mounting pressure from certain provincial leaders and labor groups to challenge U.S. President Donald Trump’s escalating tariffs impacting key sectors and causing job and investment losses in Canada.
Carney’s remarks follow the recent announcement by Stellantis to relocate the production of its Jeep Compass to Illinois instead of its Brampton, Ontario plant, a move attributed to U.S. trade measures by the prime minister. Premier Doug Ford of Ontario, scheduled to meet with Carney later in the day, urged a tougher stance against the U.S. if a deal cannot be reached.
While Ford advocates for a more aggressive approach, Carney emphasized the importance of ongoing negotiations between Canadian and U.S. officials, highlighting the current focus on sectors like steel, aluminum, and energy, including discussions on the potential revival of the Keystone XL pipeline.
In response to U.S. Commerce Secretary Howard Lutnick’s statements ruling out the removal of tariffs on Canadian automobiles in any prospective trade agreement, concerns have arisen in Ontario prompting Ford’s call for a firmer Canadian position.
Carney, who previously lifted most of the retaliatory tariffs imposed by the former prime minister to facilitate talks with Trump, has maintained tariffs on select U.S. steel, aluminum, and auto imports as negotiations persist. The prime minister engaged directly with Stellantis CEO Antonio Filosa regarding the relocation of production, expressing disappointment over the shift from Ontario to Illinois.
Regarding the idled Brampton plant, Carney disclosed discussions with Filosa on potential future models and emphasized that displaced autoworkers may find opportunities at the Windsor plant, which is expanding production. Unifor, representing Stellantis employees, expressed dissatisfaction with the transfer offer, highlighting unmet commitments in previous agreements.
Conservative Leader Pierre Poilievre criticized Carney for the Brampton plant closure, attributing it to broken promises and urging the government to reconsider policies affecting the automotive industry. Poilievre proposed eliminating the forthcoming electric vehicle mandate and implementing measures to boost domestic auto manufacturing, such as removing the GST on Canadian-made vehicles, to address the challenges faced by the sector.