Tariff war heats up with Canada vowing retaliation over Trump's car tariffs

Countries around the world are quickly mapping out their own plans to cope with Trump's 25% auto tariffs.

Canada warns it'll respond with reciprocal tariffs.

Lee Seung-jae has more.

Earlier this week, President Donald Trump signed off on 25-percent tariffs on all cars and auto parts imported into the United States.

In response, Canadian Prime Minister Mark Carney called it a "direct attack" on his country, and vowed to respond to Trump's latest tariff policy.

"President Trump announced 25% tariffs against our auto industry. And this is a direct attack, to be clear, a direct attack on the very workers that I stood in front of, UNIFOR workers We've announced, of course, retaliatory tariffs. We have other options for those retaliatory tariffs. I have asked for a meeting, I will convene rather, a meeting of the Canada U.S. cabinet tomorrow to discuss our trade options."

Carney said that Canada's long-time bilateral relationship with the U.S., involving the economy, security, and military cooperation, "is over."

Instead,.. he vowed Canada would respond with retaliatory tariffs that will have "maximum impact" on the U.S.

On the other side of the U.S. border, Mexico is negotiating for an exemption for its critical auto industry.

Speaking from Washington after holding talks with U.S. officials, Mexico's economy minister, Marcelo Ebrard, said negotiation talks are ongoing to ensure that Mexico gets preferential treatment.

The minister said that with the recent tariff policies of the U.S. administration, Mexico must protect jobs and economic activity in the country.

While Mexico is seeking a more peaceful approach to Trump's tariff policies, both Canada and the European Union have been looking to fight the U.S. president's tariffs.

In response, Trump took to his social media platform Truth Social on Thursday and said that larger tariffs could be placed on the EU and Canada,, if they work jointly to "do economic harm to the USA."

While the EU delayed its first set of retaliatory tariffs, including a 50-percent tariff on U.S. bourbon, Trump threatened to impose a 200-percent tariff on all wines and other alcoholic products from the EU if the bloc went ahead with tariffs.

Lee Seung-jae, Arirang News.