Canada: Canada’s Prime Minister-designate Mark Carney has expressed readiness to negotiate a renewed trade deal with U.S. President Donald Trump—on the condition that Canadian sovereignty is respected.
Speaking at a steel plant in Hamilton, Ontario, Carney reaffirmed Canada’s view as the government unveiled $20.7 billion (C$29.8 billion) in retaliatory tariffs on U.S. imports. The move comes in reaction to Trump’s imposition of 25 percent tariffs on all steel and aluminium entering the U.S.
Since taking office in January, Trump has committed to an escalating trade war with Canada, repeatedly threatening to annex its northern neighbour. Carney condemned the latest U.S. tariffs as “unjustified.” Carney stated that, “We’re all going to be better off when the greatest economic and security cooperation in the world is renewed, relaunched.”
Canada, the largest foreign supplier of steel and aluminum to the U.S., has imposed countermeasures targeting a wide range of American goods. The new tariffs, set to take effect at 00:01 EST (04:01 GMT), include $8.75 million (C$12.6 billion) on steel, $3 billion on aluminum, and additional duties on tools, computer equipment, water heaters, sports gear, and cast-iron products.
Trump has justified his tariff policy as required for national security and to protect domestic industries from foreign competition. The White House also cited concerns over drug trafficking and illegal migration as reasons for involving blanket tariffs on Canadian and Mexican imports.
As economic uncertainty looms, the Bank of Canada preemptively cuts interest rates from 3 percent to 2.75 percent to cushion potential disruptions.
Canadian Finance Minister Dominic Leblanc emphasised that Ottawa is still open to de-escalation. Dominic Leblanc stated that, “If you’re racing to the basement, there’s no real prize for the first person to get to the basement.”
Ontario Premier Doug Ford and federal representatives are set to meet U.S. Commerce Secretary Howard Lutnick, who hopes to “level set” trade discussions.
Carney, elected leader of the governing Liberal Party, is preparing to be sworn in as prime minister, replacing Justin Trudeau. He has vowed to emerge victorious in the trade dispute, following his landslide election victory.
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