Carney's Clock Ticks Down on Canadian Support for Tough Tactics with Trump

Canadian Prime Minister Mark Carney has garnered support from most Canadians after breaking off trade talks with the U.S., but his negotiating position may weaken in months to come. His government has introduced dollar-for-dollar counter-tariffs on $20 billion of U.S. goods and a C$7.5 billion ($5.41 billion) package of economic support measures.

Critics argue that Canada cannot win an economic war of attrition with the U.S., given its smaller economy, which is 13 times smaller than the U.S.'s. Julian Karaguesian, a former adviser at Canada's Finance Ministry and economics professor at McGill University, said Carney's leverage will start to diminish if the trade war shows up in palpable increases in unemployment, factory shutdowns, and declining income.

The support for Carney's approach toward U.S. President Donald Trump is largely driven by a 'war mentality' where Canadians are willing to make sacrifices to press back against the U.S. According to an Angus Reid poll, 76% of Canadians approved of Carney's decision to suspend trade talks, but 40% are worried their jobs are at risk.

While Trump has made last-minute changes to the tentative trade deal with Canada, adjusting U.S. auto tariffs and curtailing French-language requirements, Carney invoked military language to describe the trade dispute, saying Canada had been 'attacked.'