If Prsident Donald Trump’s auto tariffs are here to stay, Prime Minister Mark Carney says he has a backup plan.
The prime minister launched Canada’s new automotive strategy Thursday to protect an industry that is being squeezed by Trump’s trade war, announcing new measures to support and grow a domestic industry under siege.
“Tariffs have upended the bargain that’s existed for as long as I’ve lived,” Carney said during a stop in Vaughan, Ontario. And if the United States keeps hitting Canada with auto tariffs, he said, then there will be new programs to “strongly” incentivize Canadian production.
He floated a “tradable credit system” to entice automakers to invest in Canada. “Companies that manufacture and invest here would earn credits, while companies seeking to sell vehicles in Canada without paying tariffs would be required to purchase those credits,” he said.