Prime Minister Mark Carney Announces Canadian Retaliatory Tariffs on US Goods
Canada implements levies on C$28bn of American products as trade negotiations remain stalled.
Quick Look
- Prime Minister Mark Carney has announced that Canada is imposing retaliatory tariffs on C$28bn worth of US goods.
- The move follows the collapse of trade negotiations, with Carney emphasizing the need to diversify trade relationships despite the economic costs.
AI-generated summary
Why It Matters
Trade negotiations between the US and Canada collapsed in late August. The current dispute involves retaliatory tariffs on goods ranging from steel to consumer products.
Prime Minister Mark Carney said that Canada's pivot away from the US as its largest trading partner "will come at a cost", as a wave of Canadian retaliatory tariffs on American goods come into force.
In a video address, Carney added that the counter-tariffs against the US "are necessary to protect our workers".
Canada's levies will apply to nearly C$28bn ($20bn; £15bn) of American products, from steel to furniture to cotton T-shirts, and will be as high as 50%.
Both US and Canadian officials have said they would like to strike a deal, but no new talks have been scheduled since negotiations collapsed in late August.
In Tuesday's morning's 15-minute video address, Carney said his country's main focus was to diversify its trade relationships and build its economy.
He added that his government would also support workers affected by the ongoing trade war with the US "for as long as it takes".
"We have everything we need to pivot and prosper," the prime minister said. "That pivot will come at a cost.
"There's always a cost to action, but it doesn't come close to the cost of standing still."
Last week, Carney told reporters that Canada was still in search of a deal with the US that is "durable" and in the best interests of both countries.
US trade representative Jamieson Greer said that Washington would consider imposing retaliatory tariffs on Canadian goods as early as Tuesday.
"We'll see this afternoon," said in French, speaking to CBC News.
President Donald Trump threatened on Monday to halt all US business with Canada-based airplane maker Bombardier unless it moved its manufacturing south.
The aerospace giant is one of the largest in the country, contributing over C$7bn to Canada's annual GDP in 2024, according to a report by accounting firm PwC.
Trump argues that these import taxes encourage consumers to buy American-made goods and boost investment in the US from foreign companies.
But economists warn that prices rise for consumers on everyday goods that are targeted by tariffs.
What to Watch
AI outlook — possibilities, not facts
US to consider retaliatory tariffs on Canadian goods.
Likely · Within days
Open Questions
- Will the US impose retaliatory tariffs on Canadian goods?
- When will the next round of trade negotiations occur?
