Former Bank of Canada Governor Mark Carney is back in Ottawa, tapped to lead a special committee in response to U.S. President Donald Trump’s aggressive new trade policies. Trump’s latest salvo—a 25% tariff on all car imports, effective April 3—has sparked outrage among U.S. allies and promises to deepen an already heated global trade war.
Announced Wednesday, the auto tariffs build on earlier duties targeting steel, aluminum, and goods from Canada, Mexico, and China. Trump doubled down on Thursday, threatening “large-scale tariffs” on Canada and the EU if they conspire to “harm the USA economically,” according to a Truth Social post. He positioned the measures as a defense of American interests against its closest partners.
The EU is mulling a mid-April response, including a 50% tariff on U.S. bourbon, but Trump fired back, vowing a 200% duty on European wines and alcohol if the bloc proceeds. In Canada, Carney’s committee will navigate the fallout as Prime Minister, alongside provincial leaders like Doug Ford, weighs retaliatory options. Ford has already signaled support, saying, “We won’t back down from a fight.”