This commitment comes less than two weeks into Carney’s tenure as Prime Minister, emphasizing the government’s collaboration with the automotive industry to build a “fully Canadian” auto parts network. The initiative aims to increase the proportion of domestically produced auto components and reduce the number of parts that need to cross the Canada-U.S. border during production.

Carney highlighted the vulnerability of the current system, stating, “On average, auto parts cross the border six times before final assembly. In the context of a trade war, this poses a significant risk.” He also noted that the Canadian government will prioritize the procurement of domestic vehicles to support the growth of the local automotive industry and create more union jobs.

The announcement follows U.S. President Donald Trump’s decision on March 26 to impose new tariffs on imported vehicles starting April 3, which poses a major threat to the highly integrated North American automotive supply chain. Given that the majority of Canada’s automotive production is exported to the U.S., Carney indicated that Canada will soon respond to Trump’s new tariffs and may implement retaliatory measures against the United States. However, specific details on the implementation of these measures have yet to be disclosed.

Mark Carney has labeled Trump’s move as a “direct attack” and informed reporters that he will convene a high-level cabinet meeting on March 27 to determine the response strategy. Speaking in Kitchener, Ontario, Canada, he stated, “We will defend our workers, defend our businesses, defend our country, and we will defend them together.” Canada has already formulated a counter-tariff plan totaling CAD 155 billion and indicated that it will be implemented in phases based on Trump’s actions. When asked when Canada would respond, Mark Carney said, “Action will be taken soon. We have multiple options. We can impose counter-tariffs.” However, he did not disclose specific details. Mark Carney had previously considered non-tariff measures, such as imposing export taxes on goods exported to the United States. He also mentioned that he will soon engage in dialogue with Trump. Since Mark Carney was sworn in as Canada’s Prime Minister earlier this month, he has not yet spoken with Trump. Mark Carney noted that he has already spoken with Doug Ford, the Premier of Ontario. Earlier, Doug Ford told reporters, “We will ensure that we cause as much pain as possible to the American people without bringing suffering to the Canadian people.” Doug Ford added that he will soon consult with the other nine provinces of Canada to coordinate a unified response.

Doug Ford said: “We are faced with two choices: either surrender as a nation and let the United States run us over 15 times and get what it wants; or endure some pain and fight to the bitter end. I choose the latter. I believe in fighting.” As Canada’s most populous province, Ontario is the core base of Canada’s automotive industry.

In addition, Mark Carney promised to “maximize” the development of Canada’s steel, aluminum and key mineral industries. He proposed that the Canadian government will invest in the construction of transmission and transportation networks, connect mining sites with railways and roads, and implement a “one project, one review” system to speed up the environmental assessment process. At the same time, Trump’s tariff policy has also prompted Canada to speed up the search for new export markets.