Canada Prepares to Counter Trump's Tariff Threat

Canada's Prime Minister Mark Carney said his country is intensifying negotiations with the US to reach a comprehensive trade deal, but is prepared to respond if President Donald Trump's threat of 50% tariffs on Canadian goods goes into effect.

The new tariffs, announced by Trump on Monday, are scheduled to come into force on August 19 and would cover a wide range of goods, including honey, liquor, cement, dairy products, some wood products, hockey sticks, and other items. The US has excluded energy products, potash, fish, and critical minerals from the tariffs.

Carney said 'everything's on the table' if an agreement can't be reached before the tariffs kick in, but emphasized that responding to the tariffs would not happen immediately. He also noted that Canada is diversifying its partnerships abroad and building a stronger economy, regardless of the outcome of the negotiations.

The Canadian provinces most impacted by the tariffs would be Ontario, Quebec, and British Columbia, with an estimated $28 billion (CAD) worth of annual Canadian exports to the US affected, about 5% of what the US imports from Canada each year. The trade agreement between Canada, Mexico, and the US was not renewed by the US, triggering new negotiations that could run until 2036.