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24 Apr, 2025
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Trump says Canada would ‘cease to exist’ without U.S., floats automobile tariff increase
@Source: citynews.ca
President Donald Trump said Wednesday that Canada would “cease to exist” if it weren’t for the United States — comments that came just days before Canadians are set to vote in an election dominated by Trump’s comments on the country’s economy and sovereignty. Trump re-inserted himself into Canada’s election during a signing ceremony inside the oval office. saying Canada “would cease to exist as a country” without the U.S. buying goods from Canada. “I have to be honest, as a state, it works great,” said Trump, who previously threatened to make the country the 51st state through economic coercion. Trump reiterated his claim that the U.S. doesn’t need anything from Canada — including autos and oil. “We don’t really want Canada to make cars for us, to put it bluntly. We want to make our own cars,” Trump said. In recent weeks, Trump has dialed back his talk of Canada becoming the 51st state. He stopped saying it after a call with new Prime Minister Mark Carney last month. Trump also suggested Wednesday that he might increase import taxes on cars from Canada. He put 25 per cent tariffs on all imports of automobiles to the United States earlier this month. It included a partial carveout for vehicles made under the Canada-U.S.-Mexico Agreement, called CUSMA, where only non-American components of a finished vehicle will be hit with levies. Trump has separate 25% tariffs on Canadian goods — ostensibly to address drug smuggling into the U.S. “I really don’t want cars from Canada,” Trump said. “So when I put tariffs on Canada, they’re paying 25%, but that could go up in terms of cars. When we put tariffs on, all we’re doing is we’re saying, ‘We don’t want your cars in all due respect.’” Tariffs on vehicle parts are set to hit no later than May 3. The automobile industry has long been integrated between Canada and the U.S. with a deep history of co-operation. Vehicle parts cross the border multiple times before completion. While Henry Ford was building the bedrock of the American car industry in the early 1900s in Michigan, across the river John and Horace Dodge started up a bicycle company in Windsor, Ont., that would eventually become the recognizable brand — Dodge. The Ford Motor Co. of Canada was founded in Walkerville, Ont., in 1904, importing U.S. parts for assembly. The integration was deepened with the 1965 Auto Pact trade deal between Canada and the U.S. CUSMA was negotiated during the first Trump administration to replace the North American Free Trade Agreement and included increased protections for the automobile industry. The Center for Automotive Research in Michigan said earlier this month that tariffs will result in USD $107.7 billion in increased costs for all U.S. automakers, including USD $41.9 billion to the Big Three — Ford, General Motors and Chrysler, now part of Stellantis. The Big Three have been lobbying the president but Trump has remained committed to the duties saying the companies must return all manufacturing to the U.S. Ottawa changed its retaliatory measures in response to Trump’s auto tariffs last week so that automobile companies that continue to manufacture vehicles in Canada get an exemption. Auto manufacturers will be allowed to import a certain number of U.S.-assembled vehicles — ones that comply with CUSMA — free of the countermeasure tariffs. The number of tariff-free vehicles a company is permitted to import will drop if there are reductions in Canadian production or investment. Carney said last week that eliminating trade barriers within Canada would benefit Canadians far more than Trump can ever take away with his trade war as he made his case to retain power ahead of an April 28 vote. Carney has set a goal of free trade within the country’s 10 provinces and three territories by July 1. Canada has long had interprovincial trade barriers. “We can give ourselves far more than Donald Trump can ever take away,” Carney said. “We can have one economy. This is within our grasp.” Carney said the relationship Canada has had with the United States for the past 40 years has fundamentally changed because of Trump’s tariffs. Trump’s trade war and threats to make Canada the 51st state have infuriated Canadians and led to a surge in Canadian nationalism that has bolstered Liberal Party poll numbers. Trump declined on Wednesday when asked to comment on the upcoming Canadian election but said he has had good conversations with Carney. “He was very, very nice I will say. We had a couple very nice conversations, very good,” Trump said. “But I don’t think it’s appropriate for me to get involved in their election.” While Trump complained about trade deficits on Wednesday, he said he’s “working well with Canada.” “We’re doing very well,” Trump said. “We are working on a deal. We will see what happens.”
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