Canada prepared for possible US tariffs, Carney says
9 reported
Canadian Prime Minister Mark Carney said Thursday that Canada is intensifying negotiations with the United States to reach a comprehensive trade deal but is prepared to respond if President Donald Trump’s threat of 50% tariffs on Canadian goods comes into effect. The new tariffs, announced by Trump on Monday, are scheduled to take effect Aug. 19 and cover a wide range of goods including honey, liquor, cement, dairy products, some wood products, hockey sticks and other items, while excluding energy products, potash, fish and critical minerals. Carney said “everything’s on the table” if an agreement cannot be reached before the tariffs kick in, but added that responding in advance would be counterproductive. He noted the tariff threat could be a negotiation tactic by the U.S., and expressed belief that there is willingness among U.S. officials to reach a trade deal. An analysis by Desjardins, a major Canadian financial institution, said the tariffs would impact about $28 billion Canadian ($19.8 billion) worth of annual Canadian exports to the U.S., and that heightened uncertainty could dampen business confidence and curb investment plans. Ontario Premier Doug Ford said Canada needs to show strength and put everything on the table, while Prince Edward Island Premier Rob Lantz emphasized the need for a united “Team Canada approach.”
What’s reported
Prime Minister Mark Carney said Canada is intensifying negotiations with the U.S. but is prepared to respond if Trump’s threatened 50% tariffs come into effect.
The new tariffs were announced by Trump on Monday and are scheduled to take effect Aug. 19.
Tariffs cover honey, liquor, cement, dairy products, some wood products, hockey sticks and other items, but exclude energy products, potash, fish and critical minerals.
The 2020 USMCA trade pact was not renewed by the U.S., triggering new negotiations that could run until 2036.
Carney said “everything’s on the table” if no agreement is reached before the tariffs kick in, and that responding in advance would be counterproductive.
An analysis by Desjardins says the tariffs will impact about $28 billion Canadian ($19.8 billion) worth of annual Canadian exports to the U.S., about 5% of what the U.S. imports from Canada each year.
The Canadian provinces most affected would be Ontario, Quebec and British Columbia.
Ontario Premier Doug Ford said Canada needs a strong plan and to be on offense, putting everything on the table.
Prince Edward Island Premier Rob Lantz said provinces and the federal government remain united and need a “Team Canada approach.”
Key figures
Prime Minister Mark Carney
President Donald Trump
Prince Edward Island Premier Rob Lantz
Ontario Premier Doug Ford
Sources: abcnews.com
