With less than a month before US President Donald Trump‘s proposed 50% tariffs are due to take effect, Canadian Prime Minister Mark Carney has said Ottawa will not retaliate in advance, instead, will continue negotiations. Carney said that the country does not need to respond “in advance” and any such measure would be “counterproductive”. With the tariffs due to come into force on August 19, Carney said that Canada is intensifying efforts to strike a comprehensive trade agreement with the United States but made it clear that any response would come only if Washington follows through on its threat.“We don’t need to respond in advance,” he said after meeting Canada’s premiers and territorial leaders in Charlottetown, Prince Edward Island. “In fact, I think it would be counterproductive at this stage to respond in advance.”He added that Canada has not ruled out any measures if the tariffs are imposed.“If these tariffs, or other measures come into force, there’s a full range of things that we can do in that regard,” Carney said, adding that “everything’s on the table” should the two sides fail to reach an agreement before the deadline.
US imposes tariffs on Canada
The latest tariff threat, announced by Trump earlier this week, targets a broad range of Canadian exports including honey, liquor, cement, dairy products, some wood products, hockey sticks and other goods. Energy products, potash, fish and critical minerals are excluded, but the tariffs would extend to products that had previously been shielded under the United States-Mexico-Canada Agreement (USMCA). The 2020 trade pact was not renewed by the US, setting the stage for a new round of negotiations that could continue until 2036.
‘Canada will do whatever it takes’
Carney suggested the threatened tariffs could be part of Washington’s negotiating strategy rather than a final position.“We’ve seen a series of trade negotiations that the US has undertaken, and normally there’s a deadline,” he said. “Normally there’s an outsized tariff associated with that deadline.”He also said he believes US officials remain willing to negotiate a trade agreement.While talks continue with Washington, Carney said Canada is also working to reduce its dependence on the US market by strengthening its economy at home and expanding trade with other countries.“In all circumstances, irrespective of the outcome of these negotiations, Canada will do whatever it takes to build our strength at home and to support Canadian families, workers, our farmers, our businesses,” he said.“We’re diversifying our partnerships abroad,” he added.The meeting also underscored a unified position among Canada’s provinces, according to Prince Edward Island Premier Rob Lantz.“We need to have a united Team Canada approach,” Lantz said. “Canada is at it’s best when provinces and territories and the federal government work together.”Ahead of the meeting, Ontario Premier Doug Ford called for a tougher negotiating approach.“We need a strong plan,” he said. “Be on offense. Put everything on the table.”Asked whether Ontario could impose a surcharge on electricity exports to the United States, Ford replied: “It depends where we go with the U.S. Ontario has the most to lose right now. I will do everything to protect the people of Ontario.”Separately, an analysis by Desjardins estimated that the proposed tariffs would affect about 28 billion Canadian dollars ($19.8 billion) worth of annual Canadian exports to the US, roughly 5% of all goods imported by the US from Canada.“Beyond the direct trade effects, heightened uncertainty could dampen business confidence and curb investment plans,” the analysis said.The report identified Ontario, Quebec and British Columbia as the provinces likely to be hit the hardest.When asked whether any eventual trade agreement with the Trump administration could be trusted, Carney said confidence in the deal would be essential.“I have to be convinced, the (negotiating) team has to be convinced the premiers have to be convinced that an agreement is worth the paper it’s written on,” he said.
