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

(Click on image to enlarge)

Import/Export data from the Census Department, chart by Mish

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.

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