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Tariff war: Canada challenges the US and defends the automotive sector

Ottawa responds by focusing on an independent supply chain

Tensions are rising in the global automotive sector: Canadian leadership led by Mark Carney firmly denounced in Ottawa the ongoing violations of the USMCA free trade agreement by the United States, which recently imposed unilateral tariffs on steel and aluminum to curb the cross-border nation's commercial ambitions.

The economic dispute threatens to paralyze the North American automotive supply chain, a strategic sector already engaged in a complex transition toward zero-emission vehicles. The White House's moves aim to protect the domestic market and counter recent international agreements Canada is forging with European and Asian partners. However, US restrictions are producing the opposite effect. Ottawa has responded by accelerating domestic industrial development, boosting local production of key mobility components, and drastically reducing its dependence on US supplies.

At a historic moment when the transport market requires affordable raw materials and fluid trade flows to support decarbonization, the clash in North America highlights how protectionism is becoming a drag on technological innovation. For major automakers, the USMCA crisis underscores the urgency of diversifying supply chains, focusing on open markets capable of ensuring production stability. Canada thus projects itself as a new strategic hub for global mobility, determined to grow despite Washington's hurdles.

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