Carney Draws Red Line On Trump Trade Deal Over Auto Jobs
Carney said the future of the auto industry remained one of the most difficult issues in negotiations with Washington.
Canadian Prime Minister Mark Carney has issued a stern warning that Canada's automotive industry will not tolerate a trade deal with President Donald Trump that threatens its jobs. Speaking at a press conference in Manila ahead of the Association of Southeast Asian Nations (ASEAN) summit, Carney emphasized that protecting manufacturing jobs is a fundamental condition for any agreement with Washington.
This warning comes amid a dispute with multinational automotive manufacturer Stellantis, which is set to sell its Brampton assembly plant in Ontario to Canadian armoured-vehicle maker Roshel. The production at the plant will move to Illinois, leading to the layoff of over 2,000 Canadian workers as a result of Trump's trade war. Carney noted that the future of Canada's auto industry remains a challenging issue in negotiations with the United States, though progress is being made.
Canada suspended trade talks with the U.S. in August due to last-minute demands that Ottawa consider agreements it deemed unacceptable. The U.S. then imposed 50% tariffs on $20 billion worth of Canadian goods, prompting retaliatory tariffs from Canada. The Canadian government has given Stellantis 30 days to address alleged breaches of a funding agreement or face legal action to recover millions.
Industry Minister Mélanie Joly has accused Stellantis of failing to honor its commitments after abandoning planned production in Brampton without identifying a replacement vehicle. Stellantis has offered to repay $24 million in federal funding associated with the Brampton project, but Canadian officials believe the company could owe more.
Carney confirmed that Ottawa and Ontario are working on an aggressive package to persuade Stellantis to reconsider the sale, and he reiterated that the company must respect its commitments to workers and Canada. Meanwhile, Carney also announced two trade breakthroughs in Asia: a free trade agreement with the Philippines and substantial progress on a separate agreement with the Association of Southeast Asian Nations (ASEAN). These deals could boost Canadian exports and create jobs in agriculture and manufacturing.
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