Canada’s Prime Minister Mark Carney has warned that shifting the country’s economic focus away from its largest trading partner, the United States, “will come at a cost” as a new wave of retaliatory tariffs takes effect.
In a 15-minute video address on Tuesday, Mr Carney defended the levies on nearly C$28bn ($20bn; £15bn) worth of American goods—ranging from steel and furniture to cotton T-shirts—insisting they were “necessary to protect our workers.”
Under the new measures, some Canadian counter-tariffs will reach as high as 50%.
Negotiations between Ottawa and Washington collapsed in late August, and no further talks have been scheduled. However, both sides maintain they are open to reaching an agreement.
“We have everything we need to pivot and prosper,” Mr Carney said, emphasizing plans to diversify Canada’s trade relationships. “There’s always an action cost, but it doesn’t come close to the cost of standing still.”
He promised government support for affected workers “for as long as it takes.”
US response and escalating tensions
The US Trade Representative, Jamieson Greer, signaled that Washington could respond swiftly with fresh retaliatory tariffs. Speaking in French to CBC News on Tuesday morning, Mr. Greer indicated that new US measures could be announced “this afternoon.”
The escalation follows a warning from US President Donald Trump, who threatened on Monday to block all American business with Canadian aerospace manufacturer Bombardier unless it relocated its production facilities to the US.
Bombardier is a key pillar of Canada’s economy, contributing over C$7bn to the country’s GDP in 2024, according to a recent report by PwC.
While President Trump argues that import duties stimulate domestic manufacturing and attract foreign investment, economists warn that tariffs ultimately lead to higher consumer prices on everyday items.
Add Comment