Canadian PM says old Canada-U.S. ties are over

Canadian Prime Minister Mark Carney said Thursday that Canada's old relationship with the United States "based on deepening integration of our economies and tight security and military cooperation is over," a day after U.S. President Donald Trump announced steep auto tariffs.

"We must fundamentally reimagine our economy," said Carney, in response to Trump's tariffs.

Canada will respond to the U.S. auto tariffs with retaliatory trade actions, and the response will "have maximum impacts in the United States" and minimum impacts in Canada, he said, adding that nothing is off the table to defend Canada and its workers against the U.S. tariffs.

"When President Trump threatens us again, we will fight back ... with everything we have to get the best deal for Canada," said Carney, reiterating calls for Canada to build up its own auto sector to reduce reliance on the United States and to diversify its trade.

"It is clear that the United States is no longer a reliable partner. It is possible that with comprehensive negotiations, we will be able to restore some trust, but there will be no turning back," he said.

The prime minister said that Trump's office reached out to him on Wednesday night to schedule a call. If it takes place, it will be the first between the two leaders.

On Wednesday, Carney announced a "strategic response fund," which is valued at 2 billion Canadian dollars ($1.4 billion), to bolster the country's auto industry.

Trump on Wednesday announced a 25-percent tariff on all imported vehicles. The measure takes effect next week.

(With input from agencies)