Trump’s Auto Tariff Threat Triggers Canadian Retaliation Pledge

Meanwhile, Ontario’s outspoken premier, Doug Ford—whose province hosts Canada’s auto manufacturing sector—fired back at Trump’s tariff threats, telling the U.S. president to “kiss my ass.”

Ford further proposed that Canada impose additional fees on U.S. oil, gas, electricity and critical minerals, noting he would discuss counter‑measures with Carney.

His remarks drew a reaction from Trump, who on Truth Social labeled Ford’s comments as “bluster” and warned: “Someone should get these clowns to ‘fall in line,’ or the consequences for Canada will be far worse.”

Canadian government data shows that Canada supplies about 60 % of U.S. crude oil imports and nearly all of its natural gas exports.

Businesses on both sides of the border warn they could be hit by the latest round of U.S. tariffs on Canada, as well as Canada’s planned dollar‑for‑dollar retaliatory measures set for September 8.

The escalating dispute also casts doubt on the future of the United States‑Mexico‑Canada Agreement (USMCA), which Trump signed during his first term with Canada and Mexico.

In a mandatory review this summer, Canada and Mexico called for a 16‑year extension of the USMCA, while the United States indicated it would not renew the agreement in its present form.

The agreement underpins $1.6 trillion in North American trade.

Oxford Economics experts warned on Monday that dismantling the USMCA could have severe economic repercussions for Canada.

“While unlikely, rising trade tensions have increased the risk of the USMCA unraveling, which could push Canada into recession and lock it onto a permanently lower growth trajectory,” said Tony Stillo, Head of Canada Economics at Oxford Economics, and senior economist Michael Davenport.

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