(CHARLOTTETOWN, CANADA) – Prime Minister Mark Carney has said Canada will consider all possible countermeasures if talks with the United States fail to lift new 50 percent tariffs on Canadian goods. The duties are set to take effect on 19 August.
Speaking to reporters in Charlottetown, Mr Carney said everything would be on the table depending on the outcome of negotiations. He confirmed that representatives from both countries are currently in discussions covering all existing tariffs and trade restrictions. Mr Carney and US President Donald Trump have agreed to speed up this process.
The Trump administration threatened the new duties this week, citing a law from the Great Depression era. The tariffs would apply to a range of Canadian products, including electrical equipment, packaging, hockey gear and beer. They are expected to affect around 5 percent of Canadian exports to the United States. Bilateral trade in goods and services between the two countries reached nearly $900 billion (about £706 billion or €822 billion) last year.
Asked whether the latest tariff threat from Mr Trump was a real intention or simply a tactic to increase pressure during talks, Mr Carney replied that it was both. He noted that the United States has conducted a series of trade negotiations, and there is usually a deadline involved. That deadline is typically linked to what he described as an excessive tariff.
The Prime Minister said contact between Canadian officials and the US administration this week shows a serious approach to the negotiations. At the same time, he stressed that Ottawa would not accept any deal at any price. He said he needed to be convinced, and that his team and provincial premiers also needed to be convinced, that any agreement was worth the paper it was written on.