Prime Minister Mark Carney stated on Thursday that his government is not contemplating imposing additional retaliatory tariffs on American goods amidst the ongoing trade dispute. He emphasized that there are positive signs indicating progress in bilateral talks aimed at resolving the situation. Pressure from certain provincial leaders, such as Ontario’s Doug Ford, and labor organizations has been mounting for Canada to take a tougher stance against U.S. President Donald Trump as he escalates tariffs on key sectors, causing job losses and investment shifts away from Canada.
Carney’s remarks followed the recent decision by Stellantis to relocate production of its Jeep Compass from the Brampton, Ont., plant to Illinois, which the prime minister attributed to U.S. trade policies. Ford, who is scheduled to meet with Carney later in the day, urged a more aggressive response, emphasizing the need to stand up to the U.S. However, Carney emphasized the importance of ongoing negotiations between Canadian and U.S. officials, stating that it is currently a time for dialogue rather than retaliation.
Trade Minister Dominic LeBlanc has resumed discussions in Washington after a break during the Thanksgiving weekend to engage with senior U.S. officials. Carney highlighted that negotiations have been focusing on the steel, aluminum, and energy sectors, including potential discussions on the revival of the Keystone XL pipeline. Despite U.S. Commerce Secretary Howard Lutnick’s remarks ruling out the removal of tariffs on Canadian automobiles in any potential trade deal, Carney has maintained tariffs on select U.S. steel, aluminum, and auto imports as leverage in the negotiations.
In response to the shift of production from Brampton to Illinois, Carney expressed disappointment to Stellantis CEO Antonio Filosa. The company indicated the possibility of relocating another model to the Brampton plant pending the outcome of the forthcoming Canada-U.S.-Mexico Agreement renegotiation in the automotive sector. Carney mentioned the option for laid-off Brampton autoworkers to transition to the Windsor plant, which is expanding its operations to accommodate additional production demand.
Unifor, the union representing Stellantis autoworkers, criticized the decision to transfer employees to the Windsor plant, stating that it falls short of the commitments made during previous negotiations. Meanwhile, Conservative Leader Pierre Poilievre condemned the production shift from Brampton and accused Carney of failing to deliver on promises to secure a favorable deal, blaming the prime minister for job losses. Poilievre urged the government to reconsider the upcoming electric vehicle mandate and proposed eliminating the GST on domestically produced vehicles to stimulate domestic auto manufacturing.