Mark Carney’s Latest Power Move: Canada Is Luring U.S. Automakers North—While Trump Burns It All Down

Trump’s trade tantrums, a dying U.S. dollar, and economic instability just handed Canada its biggest manufacturing opportunity in a generation—and Mark Carney is ready to cash in.

July 4, 2025
Mark Carney blinked this week with Trump’s DST threat. Looks like he’s done “blinking.”

While Donald Trump is claiming fake trade deals with Vietnam and China, Canada’s new Prime Minister sat down with the big three automakers—Ford, GM, and Stellantis—and offered them a better deal:

Come north.
Build here.
We’ve got your back.

He then gave Donald Trump until July 21 to scrap tariffs or Canada will hit back.

It was a strategic masterclass. Carney didn’t rant. He didn’t throw tantrums on social media. He calmly met with auto CEOs, laid out a “Made-in-Canada” supply chain strategy, offered support for transitioning EV mandates, and dangled billions in incentives to bring their production lines to Canadian soil.

Trump gave them chaos and instability.
Carney wants to give them certainty.

And if even a fraction of U.S. automakers/parts manufacturers take the deal?
Canada wins. Big.

The Carney Doctrine: Build Here, Trade Elsewhere, Tell Trump to Pound Salt

In his closed-door meeting with the CEOs of Ford Canada, GM Canada, and Stellantis, Carney was clear: the trade relationship with the U.S. is broken—but Canada doesn’t have to wait around for Trump to stop breaking things.

He laid out a plan to:

• Strengthen Canada’s domestic auto supply chain (from battery metals to assembly lines)

• Reduce reliance on U.S. suppliers and cross-border logistics

• Diversify export markets to Europe and Asia (thanks to trade deals like CETA and CPTPP)

• Offer stability in a time of global economic and political turbulence

The kicker? Carney told them what nobody else would:

“If you want to build cars for North Americans—build them in Canada. We’ll make it worth your while.”

Billions on the Table: What Canada Gains if Detroit Comes North

Here’s what happens if Carney’s bet pays off and U.S. automakers shift just 10% of their production to Canada:

• $22 Billion+ in new exports annually (based on current U.S. import volume)

• Thousands of new auto sector jobs (each major plant = 2,000–5,000 workers)

• Massive new investments in Ontario, Quebec, and beyond (battery gigafactories, EV lines, parts plants)

• Higher GDP and tax revenues from expanded manufacturing

• Supply chain security—Canada’s got the lithium, cobalt, and nickel. The U.S.? Not so much.

This isn’t a pipe dream. It’s already happening:

• Toyota’s retooling of Ontario plants.

• Stellantis is building a $5 billion EV battery plant in Windsor.

• Hyundai and Honda are scouting expansions.

• Foreign automakers are eyeing Canada as a North American base while the U.S. self-immolates.

Carney’s EV Mandate Pivot: A Smart Concession, Not a Capitulation

After the meeting, Mark Carney signaled his willingness to scrap or revise Canada’s aggressive EV sales mandate—and insiders say it’s part of the deal to get U.S. automakers to shift operations north.

Let’s be honest: the mandate was unrealistic from the start.

• It required 20% of all new light-duty vehicle sales to be zero-emission by 2026.

• Automakers said, flat out, “We can’t meet these targets”—especially with EV adoption plateauing and the previous $5,000 federal rebate drying up.

• EV sales already dropped to 7.53% in April—a free fall from last year’s highs.

Rather than hold the line on a broken policy, Carney listened. Ford, GM, and Stellantis left the PMO meetings “cautiously optimistic” that the mandate would be dropped or softened—and they’re right to be.

Scrapping the mandate isn’t weakness. It’s strategic leverage.

• It removes a key industry barrier to moving production to Canada.

• It aligns government policy with market reality (and fiscal responsibility).

• It gives Canada more control over how EV adoption unfolds—based on capacity, not quotas.

Carney knows what most politicians don’t: you don’t grow an industry by punishing it. You build trust, stability, and let the transition happen on a timeline that works for consumers and companies.

Canada should scrap the EV mandate regardless. Not because the climate doesn’t matter—but because smart climate policy is sustainable, pragmatic, and aligned with economic goals.

If we’re going to build the cars of the future, we need to make sure we still have the factories to do it.

Meanwhile in America: Trump’s Auto Tariffs Are a Dumpster Fire

Let’s be crystal clear. Donald Trump’s 25% vehicle tariff isn’t about jobs or patriotism. It’s a desperation move from a collapsing economy. And it’s already backfiring:

• U.S. car prices are set to spike by $4,000 to $6,000 per vehicle.

• American dealers and suppliers are furious, warning of mass layoffs.

• GM’s stock plummeted 7% in a day after the announcement.

• Wall Street calls it the “dumbest trade war in modern history.”

And here’s the kicker:

Trump’s tariffs hurt American consumers more than anyone. Because TARIFFS ARE TAXES FOR CONSUMERS.

Dying Dollar, Dying Empire: Why Trump’s America Is No Longer a Safe Bet

While Carney builds partnerships and factories, Trump is watching the U.S. dollar fall off a cliff:

• The U.S. Dollar Index is having its worst year since 1973.

• Gold is soaring past $3,300/oz as investors flee to safety.

• Foreign investors are pulling out of U.S. assets and shifting to more stable markets—like Canada.

Translation?
Trump’s America isn’t just unhinged—it’s economically radioactive.

July 21: Carney’s Ultimatum to Trump

Here’s the timeline:

• Trump halted trade talks over Canada’s digital services tax (spoiler: Carney killed it to bring Trump back to the table).

• Carney gave the U.S. until July 21 to reach a new trade “understanding.”

• If there’s no deal? Canada will hit the U.S. with serious counter-tariffs.

And he’s not bluffing.

“We will fight U.S. tariffs with retaliatory trade actions of our own,” said the PMO.

Carney’s move here is classic game theory: act in good faith, but hold the nuke under the table.

Mark Carney: The Smartest Guy in the Room

Let’s be blunt:

• Carney’s a former Bank of Canada and Bank of England governor. He eats economic chaos for breakfast.

• He’s not chasing headlines. He’s building leverage.

• While Trump’s threatening automakers, Carney’s offering them a way out—with subsidies, tax breaks, a skilled workforce, and access to Europe and Asia.

He’s not just playing defense.

He’s flipping Trump’s trade war into Canada’s manufacturing revolution.

And the industry sees it.

David Adams, head of the Global Automakers of Canada, said it best:

“My sense of the Prime Minister is that he’s a pretty pragmatic person.”

Translation: “He listens. Trump yells.”

The Future of Auto Manufacturing Might Be Canadian

Trump wanted to crush Canada’s auto industry.
Carney might just expand it.

If you’re an automaker tired of uncertainty, tariffs, and a dollar that can’t hold value, ask yourself:

• Where would you rather invest?

• Where can you still get government support and economic stability?

• Where is your supply chain safer, your workers educated, your market growing?

The answer isn’t in Michigan or Texas.
It’s in Ontario, Quebec, and British Columbia.

And Mark Carney just rolled out the welcome mat.