Prime Minister Mark Carney says Canada is prepared to respond if new US tariffs take effect
Ottawa will continue trade negotiations with Washington while keeping all response options on the table
The dispute comes as the US expands tariffs globally, adding pressure to renegotiate North American trade arrangements under CUSMA
Prime Minister Mark Carney has said Canada is prepared to respond to new US tariffs on Canadian goods while continuing negotiations with Washington, warning that Ottawa will defend the country’s economic interests if necessary.
Speaking to reporters after the First Ministers’ Meeting in Charlottetown, Prince Edward Island, on July 23, Carney said Canada was intensifying discussions with the United States but would not hesitate to take action if a resolution could not be reached.
“We are intensifying our trade negotiations with the United States and will not hesitate to defend our interests if we have to,” Carney said.
“Everything’s on the table if there’s no agreement,” he added.
The remarks came after the US administration announced plans to impose new 50 per cent tariffs on a wide range of Canadian goods, escalating tensions between the two trading partners.
Trump’s Tariff Push Expands Across Global Markets
The latest measures against Canada come amid a broader expansion of US tariff actions targeting dozens of countries. Washington has announced new import levies affecting around 60 countries as temporary tariff exemptions expired, adding pressure on trading partners to negotiate new agreements with the United States.
The move has intensified uncertainty for global supply chains and increased concerns among major US trading partners over the future of existing trade arrangements.
For Canada, the tariff dispute poses a significant challenge given the depth of economic integration between the two countries. The two nations remain closely linked through the Canada–United States–Mexico Agreement (CUSMA), which governs much of North American trade.
Canada Weighs Response While Keeping Talks Open
In a statement issued on July 20, Carney said Canada would continue engaging with Washington while protecting Canadian workers, businesses and communities affected by the measures.
Following the First Ministers’ Meeting, Canada’s federal, provincial and territorial leaders issued a joint statement reaffirming their coordinated approach.
“Provinces, territories, and Canadians from coast to coast to coast have stood together, taking the necessary actions to support our economy and defend our workers, farmers, businesses, and families,” the statement said.
The leaders said Canada had submitted proposals aimed at resolving the dispute and modernising CUSMA, while agreeing to continue discussions with Washington in the coming weeks.
However, provinces remain divided over the scale of any potential response. Some leaders have backed stronger countermeasures, while others have warned against actions that could hurt Canadian exporters dependent on access to the US market.
Carney said Ottawa’s priority remained reaching a negotiated settlement but maintained that Canada was prepared to act if talks failed.
