“Our relationship will never again be what it was,” said Canadian Prime Minister Mark Carney
Trump Brushes Off Carney
Bloomberg reports Trump Brushes Off Canadian Prime Minister Mark Carney.
Canadian Prime Minister Mark Carney pushed back against US President Donald Trump’s protectionism in the auto industry, saying North America’s interwoven supply chain makes US manufacturers more competitive on costs.
Carney, fresh from a trip to meet with Trump in Washington, told a crowd of business executives on Wednesday evening that the US-Mexico-Canada Agreement strengthens the US industry.
“For America to be fully competitive, to be globally competitive in autos, you need USMCA,” the prime minister said at a conference sponsored by Bank of Montreal. He added that “not everyone shares that view at this time, and so that’s a real discussion.”
“He wants to make cars, we want to make cars, and we’re in competition,” Trump said in the Oval Office as he sat next to Carney. “And the advantage we have is, we have this massive market.”
Trump’s tariffs have cast a chill over the Canadian automotive sector, but have also affected US-based companies. General Motors Co. has temporarily idled one Canadian plant and threatened to reduce output at another. Stellantis NV, which makes vehicles in Windsor, Ontario — across the border from Detroit — cut shifts at that facility around the time tariffs came into effect.
Canadian industry officials say vehicles assembled in Canada generally have at least 50% US parts. Last year, the US exported $29.5 billion of auto parts to Canada, while importing $19.5 billion from its neighbor, according to data from the US Department of Commerce.
Canada is also by far the largest foreign buyer of American passenger vehicles and light trucks, with $23.2 billion of purchases last year. The next-largest was Germany at $7.5 billion.
At the event in Toronto, Carney reiterated his view that Trump’s protectionism has permanently altered the ties between the two longtime allies. “Our relationship will never again be what it was.”
Carney, Trump Clash Over Auto Trade
The Car Dealership Guy reports Carney, Trump Clash Over Auto Trade, Putting USMCA’s Future in Question
What They’re Saying
“For America to be fully competitive, to be globally competitive in autos, you need USMCA,” said Carney at the Toronto conference, adding that “not everyone shares that view at this time, and so that’s a real discussion.
“Our relationship will never again be what it was,” Carney said of Canada’s ties to the U.S. during the Toronto business conference, reports Bloomberg.
Why it Matters
A policy rift between the U.S. and Canada on auto manufacturing could disrupt supply chains, affect investment decisions, and inject new uncertainty into one of the world’s most integrated manufacturing networks.
Bottom line
A breakdown in U.S.-Canada auto trade relations could squeeze inventory pipelines, raise vehicle costs, and create longer lead times for parts and finished models, with GM and Stellantis retailers poised to face the sharpest disruptions if USMCA tensions escalate.
Trump’s Myopic View of Trade
Trump views trade as having a winner and a loser.
But other than coercion or force, both sides believe they benefit from a deal or there is no deal.
Trump changed all of that into “Trump Knows Best”.
Trump will not honor even his own deals. There is no trust and there won’t be trust.
An appropriate response by Canada would be to make deals with Toyota. At least Japanese companies would honor their deals.
Reciprocal Tariffs
Reader: “Tariffs are reciprocal. All Canada has to do is to lower the tariffs they charge the US to what they want the US to charge them.”
Me: USMCA IS reciprocal right now. In extremely minor instances where it isn’t, TRUMP negotiated the deal.
Please read over and over Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement
The above post contains over a dozen instances in which Trump bragged what a great deal.
It was such a great deal that Trump thanked Mexico and Canada. Notably USMCA is “Good for everybody – Farmers, Manufacturers, Energy, Unions – tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, NAFTA!”
Good deal or not (and I think it was a very good deal for the US), the fact of the matter is Trump has no legitimate right to unilaterally break a deal ratified by the Senate 89-10.
Related Posts
March 22, 2025: Should the US Import Oil from Venezuela Instead of Canada?
The answer to this question is seemingly obvious, but ….
But “Trump Considers Extending Chevron License to Pump Oil in Venezuela”
I sarcastically commented “This makes perfect sense because Venezuela is a much better neighbor than Canada.”
May 8, 2025: Fact Check on Trump’s Claim “We Don’t Do Much Business with Canada”
“We don’t do much business with Canada from our standpoint, they do a lot of business with us.”
US imports and Exports – Goods Only – China, Canada, Mexico, EU, Vietnam
Trump is woefully ignorant about largest US trade partners. In terms of US exports, Canada is #1. Canada buys more US goods than the entirety of the EU.
April 1, 2025: Excluding Oil, the US Has a Trade Surplus with Canada Every Year Since 2008
Let’s do a fact check on Trump’s Canada claims.
The additional pertinent fact is Trump just proclaimed to the world that he may not honor any deal, even those he signs.
Carney is right. Trump poisoned our relationship with Canada.
Trump is accelerating the demise of the North American auto industry.
I can’t think of anyone more damaging to an industry he’s allegedly try to save.
Also, words getting out & people are starting to ask: Why must I pay $40K for a car when I could have gotten a better Chinese car for $15K?
Canada has a problem with housing prices being too high like the USA, due to various CA govt policies. I think these spats are a the CA govt trying to deflect attention and blame from themselves for their housing and other inflation, and deceive their citizens that they are fighting for them. Just like USA, Canada voters should vote out the officials supporting housing bubbles and their economy can improve a lot. What is Carney doing about the too high housing prices?
https://www.deeded.ca/blog/how-mark-carneys-housing-plan-aims-to-solve-canadas-affordability-crisis
Hey Canadians, you fools picked the jv version of Joe Biden and now you’re living with the consequences. Breathe in the suck. You have no one to blame but yourselves.
Interesting take. Who should they have picked instead? And why?
Of course Canada is upset. The Canadian economy is designed to leach of the US with a big trade imbanance, then they badmouth Trump. Trump is putting the screws to Canada, as he should. America first,
China is doing the same damn thing. Hopefully, Trump puts the screws to China too.
Nope. Overall trade with Canada is actually balanced. Though since Canada has a much smaller population, the US has a huge advantage per capita.
US imports from Canada:
Goods: $412 billion
Services: $57 billion
Total: $469 billion
Canada imports from US:
Goods: $350 billion
Services: $90 billion
Total: $440 billion
Population: US 340 million, Canada 40 million
US imports from Canada per capita:
$469 billion/ 340 million = $1380 per person
Canada imports from US per capita:
$440 billion / 40 million = $11,000 per person
Per person, Canadians import 8x more from the US than Americans import from Canada.
And Trump is trying to mess that up by pissing Canadians off. Many Canadians are now refusing to buy US products and are no longer planning on travelling to the US.
Nope. You are wrong. The trade imbalance with Canada has been getting worse. Per capita has nothing to do with this. It is amazing anyone would upvote your misinformation.
Year of Trade US Trade Balance with Canada ($)
2014 -$41.80 billion
2015 -$22.38 billion
2016 -$17.44 billion
2017 -$23.43 billion
2018 -$26.15 billion
2019 -$33.33 billion
2020 -$21.90 billion
2021 -$58.71 billion
2022 -$93.34 billion
2023 -$78.35 billion
2024 -$73.66 billion
2025 (till quarter 2) -$33.71 billion
Hmm. Worse? You mean better. Thanks for showing that.
2022 -$93.34 billion
2023 -$78.35 billion
2024 -$73.66 billion
2025 (till quarter 2) -$33.71 billion
Plus, you only listed the goods; not the services. After services the deficit is even smaller.
And you forget to take into account that our population is 9x the size of Canada. So it only makes common sense that we should buy more from them than they buy from us.
Read my post again. Canadians buy 8x more per person from us then we buy from them.
Or maybe you are incapable of understanding that.
That is what is truly amazing.
Goods trade deficits are large and have a direct impact on domestic industries and job creation, especially in manufacturing. Large and persistent goods deficits can signal a long-term erosion of a country’s manufacturing base and an over-reliance on imports. Because of this, goods trade has been the focus of trade policy and negotiations. The services trade surplus is often ignored because so much of the number reflects large financial transaction by US banks. Countries running large good surpluses with the US deflect by pointing to serivces trade. Your posts are just political garbage that are not worth my time. Note how, under the Democrats, since 2020 the good trade imbalance exploded.
The US is the second largest manufacturing economy in the world. 16.8% of world manufacturing. Canada is just 1.4%.
Which is why we buy so little manufactured goods from Canada.🇨🇦
What we DO buy from Canada is raw materials that we end up using in our manufacturing. Aluminum, steel, copper, and energy. Also lumber, potash and uranium.
Oil imports are $120 billion. Aluminum $12 billion. Steel $8 billion. Copper $3 billion. Lumber $12 billion. Potash $3 billion. Uranium $8 billion.
We use those raw materials to produce the high value manufactured goods that we sell to Canada.
We have a fantastic trading relationship with Canada. And it’s mostly in our favor.
And regarding your 2020 comment. Lol! July 1 2020 was when Trump’s new “best ever” USMCA trade agreement came into effect. Everything that has happened in trade with Canada since that date is a result of Trump’s trade agreement.
Hahahaha!
The Trump attitude of approaching all negotiations as a business transaction creates numerous problems when it is applied to personal and international relationships. Lasting relationships are built on trust, rather than on screwing the other party in order to get the biggest short-term gain.
That’s part of the difference between trade and colonialism – trust.
This is true at every level of economics. If you can’t trust anyone, it’s very hard to do business at even a local level.
Problem is, once the word gets out that someone is a cheat & charlatan, doing business gets even harder and more expensive. It becomes necessary to factor in the risk of fraud or instability into the prices.
I think this is evident in soybeans. China pays more for Brazilian soybeans than American. Some Canadian goods are selling at a higher prices that their American counterparts because of the stability and consistency.
US’s major victory over his friends or allies such as Europe, Canada, Japan, S. Korea, but not with GLOBAL SOUTH.
It’s going to be a short lived victory as these allies adjust trade to simply go around the USA as more stable trade relationships are established.
Just an absolutely fantastic video on modern US tariff history. The last minute or two are just incredible with the points made:
The REAL Reason the US Is Betting on Tariffs – YouTube
There’s a good article in the FT about the US car industry titled:
”This is existential” Donald Trump’s tariffs drives US car sector into turmoil.
Hollow brains France, Germany, the UK and Spain 50 millions Muslim immigrants
fluctuations caused a cytokine storm.
Hollowed brain Biden’s 20 million illegal immigrant sudden fluctuations cause a cytokine storm.
Trump doesn’t do facts.
In fact, pretty much the whole MSM new cycle is based on faulty facts and misinformation.
Trump is a sandbox bully, who has inexplicably gained access to a crane with a wrecking ball with the engine running.
Trump’s latest 5D chess move is to block Chinese overflight of Russian airspace because that is unfair.
Russia banned American commercial airplane flights over their territory but lets China fly over so he is right. It lowers Chinese airline costs when they fly to and from the US because the shortest route is over Russia and the North Pole. This knocks out that route for them and equalizes the costs and the time in air. It is not a controversial decision but plain common sense.
Personally with russia s track record i would not want to fly over anyway.
Ha Ha. And the Russians and Chinese oil tankers have cheaper costs too, since they can use the Red Sea without problems with the Houthi.
So why did Russia ban American commercial overflight?
Because the Americans did it first.
action-reaction. Americans struggle to understand any relationship which is not entirely encompassed by a domination/submission dynamic. Always surprised when others push back. It is tempting to call it infantile, because it is better described as delusional.
Look up “Great Circle” under geography and yes Russia is pissed off we are helping Ukraine so they closed off its airspace to us and since China is helping Russia kill Ukrainians we see no reason to give China a freebie. You object to that? Frankly Scarlett I don’t give a damn.
TPUMPKING got COMPLETELY BONKERS!!
===FROM ZH
“It’s going to be a delicate dance, and a lot of it is going to depend on how the Chinese respond,” Vance said on Fox News’s Sunday Morning Futures.
“If they respond in a highly aggressive manner, I guarantee you, the president of the United States has far more cards than the People’s Republic of China. If, however, they’re willing to be reasonable,” he said, then the US would, too.
=====
translation
=1 china’s fault
=2 china started trade war
=3 china is still losing!
=4 trump is still very stable genius!
alx
China’s “chicken” play meets Western “all-in”. If the all-in comes about, and it will, then it will result in overproduction of rare earths from several geographic areas and China looses its “card” rather quickly since the Western nations will fund the investments and guarantee the prices. The cost would be about $30 billion over four years split among the Western economies. This incorporates a 50% increase in costs because speed is more important than efficiency. Easily doable and don’t even need Congress to vote on it.
Need more of a discussion on comparative advantage, economies of scale, each countries ‘ tariff revenue, labor costs and net benefits to each country before and after here…
Canada has a huge trade deficit with the US in goods and services, it’s only US purchases of Canadian oil (about 4 million/bbls per day) that make it into a trade surplus for Canada. That oil goes to refineries that are geared to use it (mostly heavy crude) in the mid-West. If they don’t get oil from Canada, large scale fuel shortages would result in middle Amercia.
Trump’s entire line of bullshit on Canada is just that – bullshit.
There are Toyota and Honda plants in Canada, they are currently working low hours, and building cars for export to anywhere but the US, a few for Canada – but the economy in Canada sucks, no one I know is thinking about buying a new car, except maybe delusional Government employees, who feel no economic pain yet.
But everyone I know here, with 1 exception (his wife is American), has a very strong dislike of America, or outright hatred now, because of Trump, so Trump has united Canada, in that respect at least.
I see headlines today that apparently Canada has negotiated a deal with China, where they will resume buying Canada agricultural produce (mostly soybeans) and Canada will drop the high tariffs on China EV’s going to Canada. Canada stupidly put high tarifs on China, in a vain attempt to curry favor with Trump, under Trudeau the Idiot King, a man who never saw a bad idea he couldn’t attempt to put into practice. Of course Trump will be over-joyed at this news, no doubt. Personally, I could buy a Chinese car for $10K, drive it for a couple of years then sell it for scrap, still cheaper per month/per mile than buying ridiculously over-proced domestic cars. And I drive a Toryota now, quite happy with it, but the price of a new one is way too high, I’ll keep it till it dies, then buy another used one.
I agree. Media foments Trump hatred in Canada which, ultimately, is irrelevant. US standard of living is declining so US can no longer afford to pay benefits to all these foreign countries. That’s the reality. How this all plays out is great political theater…
If SU, CNQ, IMO and CVE stop selling oil in the US they will deflate. Without DX Canada will not be able to buy US goods and services. TMX competes with Iranian, Putin and MBS oil. Canada imports oil from MBS. Imposing an embargo on themselves is bs.
Canada imports oil from the Middle-East, mostly MBS, by ship to the East Coast, where it is used by refineries geared for those grades of oil, about 1M BBL/day or more. It’s used to make mostly gas/diesel etc, as I understand it, and other products like propane are brought in by train from Western Canada. There is no pipeline from Western Canada to the East Coast region. What pipelines there are end in Ontario, at Sarnie on the Michigan border, running through the US to get there. There is probably a lot of oil and in Eastern Canada, but environmental regulations there make development too costly (no fracking allowed), took many years to get going offshore in NFLD for example.
The US oil system is organized the same way, ships bring the required grade of imported crude, or by domestic or Canada/Mexican pipeline, to the appropriate refineries that process it.
What is your point?
“Without DX Canada won’t be able to buy US goods and services” – what part of Canada buys way more from the US don’t you get? Most Canadians would probably be happy not to buy US anymore.
Oil embargo on the US mid west will destroy: oil co, R/R and the banks bc the Canadian RE already deflated.
Except Canada is building out terminals to export energy to anyone who isn’t the USA. This hasn’t been necessary for decades because the trade with the USA was beneficial enough. That’s no longer the case and Canada is responding accordingly.
While they already have terminals for exporting to the SEA region, they are expanding it ASAP. Contacts are already taking into place.
Reader: “Tariffs are reciprocal. All Canada has to do is to lower the tariffs they charge the US to what they want the US to charge them.”
The Reader is a dumb f*ck.
Canada’s tariffs on US autos and auto parts were zero for many decades. Then Trump put 25% tariffs on Canadian autos and auto parts in March.
On April 9 Canada issued reciprocal tariffs in response to Trump’s.
What does “dumb fu11ck” mean?
(c) coming to america
It’s a complement. Call the custom officials at the airport that and it will make them happy and whiz you through the line.
It’s very rare that I agree with you Doug78, but you nailed this. I don’t understand the down votes.
Canada has many good paying jobs due to some American Auto plants and parts supply manuffacturing in Canada.
Canadians traditionally buy mostly American and many Japanese vehicles. But if America creates unemployment in the Canadian Auto sector do you think Canadian buyers have no alternatives? Korea, China and others might then join the Japanese to provide all the vehicles we need. American vehicles might then be last on the list. Canada could start putting large tariffs on American vehicles while removing tariffs on foreign vehicles when they start manufacturing at plants in Canada. Honda and Toyota already have plants in Canada. Other foreign auto companies from Korea and China etc.will be happy to move into Canada and replace those American firms.
Is America starting to shoot itself in the foot with some of it’s strategies lately?
https://driving.ca/car-culture/lists/canadian-made-car-models-built-assembly-tariff
Canada has car consumption alternatives, but not car production alternatives… Car production is entirely based on remnants of Autopact that was a generous donation to canada. Can’t afford that anymore… see Curtis’ comment…
As a Canadian, I’ve always thought it was a matter of time before the US stopped subsidizing our lifestyle. We love social welfare and free healthcare so we stopped spending money on our military when we realized the Americans would protect us. Every Canadian has been paying import duties, excise taxes and other fees on merchandise we buy from US companies for as long as I can remember. It’s still happening. We aren’t discouraged from buying from the US because of the exchange rate, it’s all the tariffs Canada charges. The chickens have finally come home to roost and Canada is getting the ass kicking we deserve.
Yes, but the US has benefited from the arrangement also – particularly with raw materials imported from Canada.
The same lifestyle in the EU and the UK. Results: London was taken over by half a million “Free Palestine” protestors, last Sat. Hamas lost the war with Israel, but won the war on GB.
And that effects tariffs how?
I don’t think it does but it’s a common distraction point.
Canada is only 40 mil people! got enough sh11it to be wealthy
nobody subsidize anybody!!
corps move jobs into Canada cause Canada is white, and NO threat litigation.like in America w/ racial tensions!!
Mark Carney: stop bitching around. In 1981 the Japanese agreed to Voluntarily
Export Restrain (VER). Instead of selling Toyota Tercel, which was smaller than Cadillac Eldorado trunk, they sent a team to Hollywood and asked them what they liked and disliked about BMW and the Benz. Toyota produce ES and LS, which beat the Germans. In 2026 LS reached it Ex date. Mr Carney: producing aluminum is cheap in Canada. Why don’t u produce an aluminum SUV EV for half price and beat BYD.
We had Tercels here – I remember them.
That may not have been their best, but Toyota makes or made some long lasting dependable cars
Yeah maybe not as good as they once was, but chances are you and I are not either
Cuz China labor is 8usd/hr…
We buy less and less from XACO. Chinese labor may deflates to $4/hr. Extreme unemployment fluctuations, in repetition, can break China apart. No pharma (stimulus) can cure it.
Trump views trade as having a winner and a loser. But other than coercion or force, both sides believe they benefit from a deal or there is no deal.”
It doesn’t matter what countries believe. What matters is how the loss of manufacturing affects generational wealth.
The hog-wild outsourcing of all sorts of strategic goods to foreign nations, especially China, was the downfall of America.
Allowing massive illegal immigration that coincided with drugs being easier to smuggle into the US & lower street prices. Reagan / Congress screwed America with the 1986 Amnesty.
Trade is rarely balanced. There are clear winners & losers, when you view the changes over 2-3 decades. Trump is trying to change this. And when started down this path, he didn’t promise it was going to be a one-term, one & done correction.
Ben… I want you to look at our economy and tell me who exactly you think the loser is here. Are you legitimately TDS to the point where you think this is working for us? Do you think anyone is putting up with this past maybe midterms? Yeah I’m sure voters will stick with this while we all live in shanties, that tracks!
Daddy says it’s working great… and he loves daddy.
“ It doesn’t matter what countries believe. What matters is how the loss of manufacturing affects generational wealth.”
Yep. And Trump is doing everything he can to make US manufacturing as uncompetitive as possible.
Current US manufacturing can never compete with 8/hr in China. Think longer picture. The future will be AI and robots – that part we can build here going forward. Obviously not everything, but high end stuff yes. In the meantime, let’s have them fund the investment through tariffs. We can’t afford to subsidize the world anymore. Ben is correct IMO. Without Trump action, I can guarantee you will be living in that shanty…
The US is still the #2 manufacturer in the world, behind China.
China 27.2%
US 16.8%
Japan 6.5%
Germany 5.8%
S Korea 3.7%
Manufacturing still employs 12.7 million Americans. Most of those are decent high paying jobs because automation makes each worker more productive. Though in the long run, the number of workers will continue to slowly decline because of that automation. That’s a given.
In fact, as the entire world automates more and more, wages will become a smaller and smaller portion of the cost to produce. So we will be competing on who automates best, and who has the lowest cost for other inputs.
Trump says he wants to make manufacturing great again. The way to do that is to make our manufacturers even more competitive by lowering their non-wage costs as much as possible.
However, he is doing the exact opposite. Tariffs on steel, aluminum, copper, parts, etc are increasing costs for American manufacturers, making them less competitive.
These manufacturers also need low power prices. But Trump wants to stop renewables, which are providing over 80% of new US power generation each year. Which will eventually result in power shortages and higher prices for all.
The sad part is that we are still competitive in many areas. But Trump’s policies will reduce our manufacturers ability to compete.
Saw a story thsi week about Sharpie, made-in-USA markers/pens etc – they spent 2 years+ to re-arrange supply chains and setup robotic AI production at a plant in the US they already had. Resulting in 0 new jobs, but preventing the closing of the plant.
Cost $2 Billion total, which buys a lot of cheap markers made in China. Was it worth it, I don’t know, have to sell a lot of markers and pens to make that cost back. Workers at the plant would be in favor of course.
Of course all this was done before Trump’s tariffs kicked in, now it would probably be too costly, and the project cancelled.
Trump is mentally ill. He hates electricity producing windmills and believes they should be eliminated because they are ugly.
Yes, back in the day conservatives were in love with labor union strikes for higher wages. Affluent factory workers were celebrated in Congress by Republicans. That’s what Trump wants to bring back.
I see some possible echos of Fordney Mccumber in the early 20’s in the sense that there was not much of an instant response to those tariffs as Europe was largely distracted with other things. There was of course eventually a major reaction by the time we got to Smoot Hawley.
I suspect other countries are sitting on their hands for a different reason here specifically the possibility or likelihood thesr tariffs are shot down at SCOTUS under the major question doctrine (as they should be).
That leaves open the possibility that major tit for tat is still on the way.
The global economy is stalling / declining. Layoffs are increasing. Politicians are going to do what it takes to make sure their constituency has jobs. It’s a survival strategy to abandon trade agreements and on-shore manufacturing.
…Politicians are going to do what it takes to make sure their constituency has jobs…
What happens when your constituancy are the billionaires, grifters and scammers?
You take away their green energy subsidies?
Politicians are great at job creation.
The World economy is stalling. Layoffs happen in this environment initially, and then job cuts follow. If we know in advance the jobs won’t be required or affordable, it’s best to go straight to Let Go, and save what little money is left.
Unfortunately many Politicians forget or don’t care, what their role is. Protect America as a whole, and not just your constituents. While I agree they are your primary concern for daily life within your element or scope of control, which isn’t much. Just do that please! Otherwise get on the Primary Calls from The People!!!
Forget You and your reelection, and start Caring about the damn Country!!! You were elected for the entire picture, and not your loudest view of things that you hear only. Wake Up!!
Hopefully Trump and the Republicans listen to you.
“It’s a survival strategy to abandon trade agreements and on-shore manufacturing”
It takes 5-10 years to set up a new factory, get the supply chains in order, and get production tuned up and efficent and profitable. It took China 30+ years to get their production ducks in line.
So any politician who thiniks they will get this done in time for the next election is delusional. No jobs will be created for years, if iever.
I’m not saying this should not be done, but it takes decades, far too long for the qarterly-profit/stock buyback manager class in the West. Just easier to buyback stock, inflate the value artificially, and pretend everything is fine. By the time it all colapses, they think they will be living in their villa in New Zealand or South America or some other tax-haven.