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Canadian Prime Minister Mark Carney has issued a stark warning about the economic impact of U.S. President Donald Trump’s escalating trade war. He emphasized that American consumers and workers are bearing the brunt of the conflict.
Speaking at a campaign event in Windsor, Ontario, ahead of Canada’s April 28 election, Carney pointed to declining consumer confidence as a clear sign of the economic damage.
Economic Consequences of the Trade War
Carney highlighted that U.S. consumer confidence has plummeted. The Conference Board reported a 7.2-point drop in its index for March, bringing it to 92.9—the lowest level since January 2021.
The trade war, which has seen fluctuating tariffs and mounting uncertainty, is creating significant instability in the market.
“His trade war is hurting American consumers and workers and it will hurt more. I see that American consumer confidence is at a multi-year low,” Carney stated.
Trump’s aggressive tariff strategy has included a 25% levy on Canadian steel and aluminum. Further sweeping tariffs on Canadian goods are looming on the horizon.
These actions, according to Carney, are aimed at strong-arming Canada into submission.
“He wants to break us so America can own us,” Carney remarked. “And it will never ever happen because we just don’t look out for ourselves, we look out for each other.”
Trade Tensions Threaten North American Auto Industry
Standing against the backdrop of the Ambassador Bridge, a vital trade link carrying 25% of all U.S.-Canada trade, Carney underscored the high stakes of the ongoing dispute.
The bridge facilitates CA$140 billion ($98 billion) worth of goods annually, translating to approximately CA$400 million ($281 million) per day.
“Now those numbers and the jobs and the paychecks that depend on that are in question,” Carney said. “The relationship between Canada and the United States has changed. We did not change it.”
In response to the tariffs, Carney announced a CA$2 billion ($1.4 billion) “strategic response fund” to safeguard Canadian auto sector jobs.
Autos represent Canada’s second-largest export, directly employing 125,000 workers and supporting nearly 500,000 additional jobs in related industries—many of which are unionized positions.
“Canada will be there for auto workers,” Carney affirmed.
Diplomatic Relations at a Standstill
Further complicating matters is the noticeable diplomatic freeze between the two leaders. Since taking office on March 14, Carney has yet to have a direct conversation with Trump.
This is an unusual lapse in protocol given the historically close ties between U.S. and Canadian leaders.
Meanwhile, Trump continues to push for Canada to become the 51st state, an idea that has provoked widespread outrage in Canada.
The American president has gone so far as to downplay the significance of the border, suggesting it is merely a “fictional line.”
His administration’s aggressive stance, combined with economic pressure, has fueled concerns about long-term stability in North American trade relations.
With tensions running high and economic uncertainty mounting, Carney’s remarks reflect the growing strain between the two allies.
Canada now prepares to defend its industries and sovereignty against an increasingly hostile trade environment.
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