Carney promises $2B auto industry fund as Trump hits sector with tariffs
CBC
Homing in once again on the fractured Canada-U.S. relationship, Liberal Leader Mark Carney unveiled a $2-billion proposal to protect Canada's auto industry while in Windsor, Ont., on Wednesday — one of the front lines of the tariff war.
Calling it a "strategic response fund," 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."
Carney's announcement came hours before U.S. President Donald Trump ratcheted up the trade war, announcing plans for a 25 per cent tariff on all vehicles not made in the United States as of April 2.
"Our auto sector has always been there for our country. So in this time of uncertainty and need, Canada will be there for our autoworkers," Carney said Wednesday morning in the shadow of the Ambassador Bridge.
The crossing not only connects Windsor and Michigan, but also helps shuttle millions of dollars worth of goods traded between Canada and the U.S. every day.
Windsor, home to major auto plants like Ford and Stellantis, has become synonymous not just with Canada's auto industry but also its deeply intertwined trade relationship with the U.S. industry.
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 said. "That will help insulate us from President Trump's trade threats and it will grow the economy."
If elected April 28, Carney said his government would also prioritize and procure Canadian-built vehicles.
Later Wednesday, Trump moved ahead with a potentially devastating blow to Canada's auto sector — and the Windsor region.
"What we're going to be doing is a 25 per cent tariff on all cars that are not made in the United States," Trump announced just before 5:30 p.m. ET.
The president did not immediately suggest that there would be carve outs for imports from Canada or Mexico. He called the tariffs "permanent."
The president has already imposed 25 per cent tariffs on Canadian steel and aluminum.
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