Prime Minister Mark Carney says Canada is prepared to consider retaliatory measures against the United States if negotiations fail to produce a trade agreement, as tensions rise ahead of President Donald Trump’s latest tariff deadline.
Speaking Thursday at a meeting with provincial and territorial premiers in Charlottetown, Prince Edward Island, Carney said Canada is intensifying negotiations with Washington but will defend its economic interests if necessary. He indicated that a wide range of countermeasures remains under consideration if an agreement cannot be reached.
Trump announced this week that the United States plans to impose 50 per cent tariffs on roughly US$20 billion worth of Canadian products, with the measures scheduled to take effect on August 19. The affected goods include products such as dairy, alcohol, clothing, furniture and cement.
Carney and Trump spoke earlier this week and agreed to intensify bilateral trade negotiations. The Canadian government says it is seeking a comprehensive agreement rather than separate deals covering individual sectors.
Canada’s premiers have expressed different views on how Ottawa should respond if negotiations fail. Ontario Premier Doug Ford has called for Canada to respond “dollar for dollar” to U.S. tariffs, while British Columbia Premier David Eby has suggested access to critical mineral exports could potentially be used as leverage. Alberta and Saskatchewan, however, have opposed restrictions on key exports to the United States.
The dispute comes amid broader uncertainty over the future of the Canada-U.S.-Mexico trade relationship. Trump declined earlier this month to automatically extend the USMCA for another 16 years, meaning the agreement remains in force but will face annual reviews as negotiations continue.
Carney stressed that reaching an agreement remains the government’s priority, but made clear that Canada is prepared to respond if necessary as the tariff deadline approaches.
I can monitor the Canada–U.S. tariff negotiations and alert you when there is a major development or deal.