Canadian government looking for possible retaliation against US auto tariffs

Canadian Prime Minister Mark Carney on Wednesday said his government will be looking at its options for possible retaliation against the US auto tariffs, local media reported.

The liberal leader on his election campaign tour said the tariffs are "a direct attack" against Canadian workers, regardless of how they are applied, according to CBC News.

"We have anticipated this possibility," he was quoted as saying. "We will take the steps that are in the interests of Canadian workers, of Canada. We're going to stand up for Canada. We're going to be united."

Previously Carney announced a "strategic response fund" which is valued at 2 billion Canadian dollars (1.4 billion US dollars) to bolster the country's auto industry.

Carney said the money would be used to boost the auto sector's competitiveness, protect manufacturing jobs, help workers gain expertise and build "a fortified Canadian supply chain."

Auto parts often cross the border multiple times, and the added costs of tariffs and counter-tariffs would quickly snowball.

Carney called that a "huge vulnerability" and promised to build an "all-in-Canada" manufacturing network to build more car parts domestically, limiting how often they cross the border during production.

"In the new world, that will be an advantage," he was quoted as saying. "That will help insulate us from President Trump's trade threats and it will grow the economy."

If elected on April 28, Carney said his government would also prioritize and procure Canadian-built vehicles, reported CBC News.

US President Donald Trump announced plans on Wednesday for a 25-percent tariff on all vehicles not made in the United States as of April 2.