Canadian Prime Minister Mark Carney strongly criticized United States President Donald Trump’s recent tariff policy on Thursday, warning that it will “rupture” the global economy. While the latest round of reciprocal duties does not directly affect Canada, Carney reminded that his country has already been subjected to three previous waves of US tariffs—specifically targeting the auto industry, as well as steel and aluminum.

Carney described Trump’s actions as “unjustified, unwarranted,” and ultimately “misguided,” emphasizing that they contribute to economic instability and diplomatic friction between long-standing allies. Despite Canada being left out of the most recent tariffs, the Canadian government has chosen to respond forcefully to earlier measures.

In a significant counteraction, Carney announced that Canada will impose a 25% tariff on car imports from the United States that do not comply with the United States–Mexico–Canada Agreement (USMCA). He said the policy “matches the US approach” and represents a “carefully calibrated and targeted” measure designed to generate maximum economic impact on the US while minimizing disruption to Canada’s own economy.

Notably, the new Canadian tariffs will not apply to vehicle content and auto parts originating from Mexico, a strategic decision to uphold North American trade ties outside the immediate US-Canada rift. Carney reiterated that these steps were taken “reluctantly” but are necessary to defend Canada’s economic interests.

Carney also stated that Canada is prepared to take a leadership role in promoting fair and stable global trade. “We will continue to strengthen partnerships with reliable allies,” he said, positioning Canada as a champion of cooperative trade policies in contrast to what he described as Washington’s increasingly unilateral approach.

As tensions escalate between two of North America’s largest economies, Carney’s statements and retaliatory measures underscore a broader realignment in trade relations and signal Canada’s willingness to push back against U.S. policy decisions it views as harmful and antagonistic.