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Canadian Prime Minister Mark Carney has warned that the trade war with the US will come at a cost, emphasizing the necessity of retaliatory tariffs to protect Canadian workers. Canada is set to impose tariffs on nearly C$28 billion worth of American goods, with rates as high as 50%. This measure is a direct response to new US tariffs on Canadian imports, covering a wide range of products from steel to furniture and cotton T-shirts.
In a 15-minute video address, Carney stated that the focus of his government is to diversify trade relationships and build the economy. He assured that support would be provided to workers affected by the ongoing trade conflict for as long as necessary. "We have everything we need to pivot and prosper," he said, noting that while there is a cost to action, it is less than the cost of inaction.
Meanwhile, US trade representative Jamieson Greer indicated that Washington is considering retaliatory tariffs against Canada. President Donald Trump has threatened to halt all business with Canadian aircraft manufacturer Bombardier unless it shifts its manufacturing to the US. The trade relationship between Canada and the US is significant, valued at nearly $900 billion last year, with the US economy being approximately 13 times larger than Canada's. Despite some resilience in Canada's economy, recent job losses have raised concerns about the impact of the trade war.