Canada Prepares to Respond as Trump Tariffs Loom

Canada's Prime Minister Mark Carney said the country is ready to respond if President Donald Trump's new tariffs on Canadian goods go into effect. The tariffs, which cover a wide range of goods including honey, liquor, cement, and hockey sticks, are scheduled to kick in on August 19.

Carney stated that 'everything's on the table' if an agreement can't be reached before the tariffs take effect. He also noted that the tariff threat could be a negotiation tactic by the U.S., as the U.S. often uses deadlines and outsized tariffs to negotiate trade deals.

The Canadian government is intensifying negotiations with the U.S. to reach a comprehensive trade deal, but Carney emphasized that Canada will continue to build and diversify its economy regardless of the outcome of these negotiations.

According to an analysis by Desjardins, the tariffs could impact about $28 billion Canadian worth of annual Canadian exports to the U.S., which is approximately 5% of what the U.S. imports from Canada each year.