Carney says Canada will fight back as Trump takes trade war to the world

Just before announcing his latest round of tariffs this afternoon, Trump said he saw today as "one of the most important days" in American history.

"It's our declaration of economic independence," he said from the Rose Garden at the White House, before imposing sweeping tariffs on nearly every import going into the United States.

Independence, here, could also be replaced by isolation. The new tariffs will be a significant hit to the global economy, with a 10 per cent tariff on dozens of countries and even higher rates for trading partners like China and Europe.

As we've detailed here, Canada and Mexico escaped those "reciprocal" tariffs today on account of CUSMA, the free trade agreement. But steeper tariffs and a broken alliance remain.

We're wrapping up our coverage on this page, but here are some links if you're looking for more information on a particular topic:

• Canada was spared the worst today as Trump tries to reshape the American economy.
• Stocks rose just before closing ahead of Trump’s announcement, after what turned out to be a shaky day in the markets.
• Your most common trade war questions, answered in one place.

See you tomorrow.

Senior business reporter Peter Armstrong here. Canada certainly had a better day than many had been expecting. But the road ahead remains full of threats, tariffs and the ongoing uncertainty that has been part and parcel of the Trump administration.

The biggest question for Canada still revolves around what Trump really wants. On the one hand, he says he wants to upend 70 years of global trade. On the other hand, he’s handing out carve outs and exemptions.

He can’t have it both ways forever. If Trump really wants to change the global trading system, then Canada has merely kicked the problem down the road and will eventually have to deal with that re-ordering.

If this is all part of a bigger plan to negotiate with countries, then Canada may have dodged the worst of it. But the uncertainty remains and that’s why Canadian businesses and policymakers remain nervous about the road ahead.

The U.S. Senate resolution calling to block broad tariffs on Canadian products narrowly passed this evening at 51-48.

Led by Democratic Sen. Tim Kaine of Virginia, it called for an end to the national emergency the president used to justify the tariffs.

The vote required at least four Senate Republicans to support it. The four Republicans who had indicated they would vote in favour did so, despite Trump taking aim at them in a post on Truth Social early this morning.

They are Susan Collins of Maine, Rand Paul and Mitch McConnell of Kentucky and Lisa Murkowski of Alaska.

The legislation is largely symbolic because it’s unlikely to make it through the Republican-controlled House of Representatives.

Canada's biggest victims today? The auto sector, followed by steel and aluminum and an assortment of other goods.

But the harsh reality is that Canada's largest manufactured product, autos, still faces a hodgepodge of tariffs: 25 per cent on fully assembled vehicles and some parts, while other parts face none.

One Canada-U.S. trade consultant said Canada fared better than most countries today. But it's cold comfort for certain sectors.

“Autos is going to be massively impactful for Canada," said Eric Miller, the Canadian-born head of the Rideau Potomac consultancy in Washington.

"That's a huge amount of pain for Canada. And you will see a huge amount of restructuring and realignment in the North American auto sector.”

One industry player put it even more bluntly, in a social media post, predicting an industry standstill within days, and not just in Canada.

“The. Auto. Tariff. Package. Will. Shut. Down. The. Auto. Sector. In. The. USA. And. In. Canada," Flavio Volpe, head of Canada's auto-parts lobby, in a post on X.

“Don’t be distracted. 25% tariffs are 4 times the 6/7% profit margins of all the companies. Math, not art.”

Other Canadian sectors facing large tariffs are steel, aluminum, energy products and anything not traded under the rules of CUSMA.

Estimates range for how many goods that covers. But it appears more than half of Canada's exports to the U.S. may now face tariffs.

The minister leading B.C.'s tariff response, Ravi Kahlon, said the provincial government isn’t letting its guard down just yet, despite escaping today’s reciprocal tariffs.

“The challenge we have is that this continues to change hour by hour, day by day and anything can still happen,” Kahlon said today of Trump’s tariff policies.

B.C.’s government is going ahead with its tariff response bill, which is an attempt to break down interprovincial trade barriers and enable the province to charge U.S. trucks driving through the province.

B.C. Premier David Eby has said the province needs all the tools it can get to fight the American threat, which he said is designed to “force us into economic servitude to the U.S.”

Bloc Québécois Leader Yves-François Blanchet said Trump’s announcement today appears to maintain the status quo for Canada.

"It seems we have a chance of being able to complete our election campaign without more American interference," Blanchet told reporters outside the Bloc campaign bus in Quebec City.

Blanchet's party has lost a significant amount of ground in Quebec in favour of the Liberals in the wake of Trump's tariff threats, according to CBC's Poll Tracker.

Conservative Leader Pierre Poilievre is speaking at a rally in Kingston, Ont., where he briefly addressed Trump’s auto tariffs before continuing with his stump speech. He called them “an unfair attack on our economy.”

“Trump is going after our autoworkers. For decades, workers on both sides of the border locked arms to build the greatest auto sector in the world. The president is betraying America’s closest friend and attacking our economy,” he told the crowd.

Poilievre said if he wins the election he would work to get a deal that immediately removes the tariffs. Earlier in the day, he laid out his plan to respond to Trump.

Shortly before Carney stopped to speak to reporters on Parliament Hill tonight, Alberta Premier Danielle Smith posted a statement to social media in which she said "it appears the worst of this tariff dispute is behind us."

But in case anyone was in a mood to celebrate, or merely breathe a sigh of relief, the prime minister offered a few significant notes of caution.

"President Trump has just announced a series of measures that are going to fundamentally change the international trading system," Carney said.

And as Carney noted, previously announced tariffs on Canadian goods — including automobiles, steel and aluminum — will remain in place. Additional tariffs, he warned, may yet be applied to pharmaceuticals, lumber and semiconductors.

"We're in a situation where there is going to be an impact on the U.S. economy which will build with time," he said. "The series of measures will directly affect millions of Canadians."

While repeating his commitment to fight the tariffs and protect workers, Carney also used the word "crisis" to describe the situation.

In other words, the only good news is that things could have been worse. There is still a long way to go. And above and beyond trade between Canada and the United States, the ramifications of Trump's tariffs are only beginning to reverberate.

Ontario Premier Doug Ford has been in regular contact with senior U.S. trade officials. He’d been told that cars imported from Canada would only be taxed on their Canadian-made parts.

"We did have a conversation with the CEOs," Ford said, referring to automobile manufacturing companies. "I believe and hope this isn't written in stone. I believe it's going to be a lot less than 25 per cent and that's what I believe from our conversation."

Canada's auto sector is concentrated in Ontario, particularly Windsor, which has been dubbed the "automotive capital of Canada."

Good evening, I’m a reporter in our Fredericton bureau.

New Brunswick Premier Susan Holt is one of the first Canadian leaders to speak out, just two hours after Trump announced his sweeping tariffs on much of the world.

While Canada was spared the worst, “that uncertainty doesn’t go away,” Holt said in a sombre tone.

She called today a continuation of the status quo of “unnecessary stress and pain for both of our countries.”

In a province where over 90 per cent of exports go to the U.S., Holt said the province’s plan to financially support industries impacted here and boycott U.S. business will continue.

The provincial government has stopped purchasing U.S. goods and American liquor is off the shelves. About 10 Teslas that the province owns are “sitting in a parking lot” while the province looks into selling them, she added.

While steel, aluminum and auto manufacturing are not New Brunswick’s main industries, the province will still face pain, Holt said.

“You don't treat your neighbours like this.”