Global leaders have sharply criticised United States President Donald Trump for imposing a 25-percent tariff on foreign-made automobiles, warning that the move could trigger a severe trade backlash.

Canadian Prime Minister Mark Carney delivered one of the most forceful responses, declaring that "nothing is off the table" in retaliation to the US administration’s latest trade restrictions.

"The old relationship we had with the United States – based on deepening integration of our economies and tight security and military cooperation – is over," Carney said in a strongly worded statement.

He underscored that Canada would now diversify its trade relations and move away from an overreliance on the US market. "We will need to do things previously thought impossible, at speeds we haven’t seen in generations," he added.

The announcement of the auto tariffs, which take effect from April 2, has also drawn sharp criticism from Mexico and Europe, where officials have warned of countermeasures.

Trade war escalation

The tariffs, which Trump had hinted at since the start of his second term, have been described as a violation of the free trade agreement between the US, Canada, and Mexico, signed in 2019.

German Chancellor Olaf Scholz also denounced the move, calling it a setback for global trade. "The US has chosen a path at whose end lie only losers, since tariffs and isolation hurt prosperity for everyone," he remarked.

Carney, meanwhile, signalled Canada’s readiness to retaliate with trade actions designed to inflict "maximum impact" on the United States while minimising harm to Canadian industries.

"Let’s be clear. We’re all on the same page. We won’t back down. We will respond forcefully," the Canadian premier stated.

Concerns over economic fallout

Industry analysts have warned that Trump’s tariffs could have unintended consequences for the US automotive sector. Many major automakers, including General Motors (GM), Ford, and Stellantis, rely on cross-border supply chains that could now be disrupted.

Flavio Volpe, head of Canada’s Automotive Parts Manufacturing Association, pointed out that nearly two million vehicles produced in Canada are destined for US markets. He noted that half of the components used in those vehicles are sourced from the United States.

"Anything that the White House is trying to do to Canadians is going to be done directly to the three biggest automotive enterprises that are based in the US," Volpe said.

The impact has already been felt in the stock market, with GM shares dropping sharply since the tariffs were announced.

Trump Defends Tariffs Amid Mixed Domestic Response
Trump has defended the tariffs as a measure to protect American jobs and revive domestic manufacturing.

The United Auto Workers (UAW), one of the largest labour unions in the US, has welcomed the tariffs, calling them a step towards ending "the free trade disaster that has devastated working-class communities for decades".

"These tariffs are a major step in the right direction for autoworkers and blue-collar communities," UAW President Shawn Fain said. "It is now on the automakers, from the Big Three to Volkswagen and beyond, to bring back good union jobs to the US."

However, industry experts have warned that the tariffs are unlikely to deliver immediate benefits for US workers.

"If anyone is going to build a new plant, it will take two, three, maybe four years – beyond Trump’s time in office," observed Al Jazeera’s Alan Fisher.