Carney Warns of Retaliation as Canada Braces for Trump’s 50% Tariff Deadline

VANCOUVER, British Columbia — Prime Minister Mark Carney said Thursday that Canada is intensifying negotiations with the United States to secure a comprehensive trade agreement but remains fully prepared to retaliate if President Donald Trump’s threatened 50% tariffs on Canadian goods take effect.

The tariffs, announced by Trump on Monday, are scheduled to be imposed on August 19.

“If these tariffs, or other measures, come into force, there is a full range of responses available to us,” Carney said following a meeting with Canada’s premiers and territorial leaders in Charlottetown, Prince Edward Island.

Carney emphasized that “everything is on the table” should an agreement not be reached before the deadline.

“We do not need to respond in advance,” he added. “In fact, doing so at this stage would be counterproductive.”

The proposed duties target a broad array of products, including honey, liquor, cement, dairy, certain wood products, and hockey sticks. Energy products, potash, fish, and critical minerals are excluded, though the tariffs would apply to goods previously shielded by the United States-Mexico-Canada Agreement (USMCA). The 2020 trade pact was not renewed by the U.S., triggering a new round of negotiations that could extend until 2036.

Carney suggested the tariff threat may be a negotiating tactic.

“We have seen a series of trade negotiations undertaken by the U.S., and typically there is a deadline accompanied by an outsized tariff,” he observed.

Despite the pressure, Carney expressed confidence that U.S. officials are willing to reach a deal. Prince Edward Island Premier Rob Lantz reinforced a unified front among Canadian leaders.

“We need a united Team Canada approach,” Lantz said. “Canada is at its best when provinces, territories, and the federal government work together.”

Carney pledged that Canada will continue to strengthen and diversify its economy regardless of the negotiation outcome.

“In all circumstances, Canada will do whatever it takes to build our strength at home and support Canadian families, workers, farmers, and businesses,” he said, noting efforts to expand trade relationships beyond the United States.

An analysis by Desjardins Group, one of Canada’s largest financial institutions, estimates the tariffs would affect approximately $28 billion CAD ($19.8 billion USD) in annual Canadian exports to the U.S.—roughly 5% of total U.S. imports from Canada.

“Beyond the direct trade effects, heightened uncertainty could dampen business confidence and curb investment plans,” the analysis warned.

Ontario, Quebec, and British Columbia are projected to be the hardest-hit provinces.

Ahead of the meeting, Ontario Premier Doug Ford called for a forceful strategy.

“We need a strong plan,” Ford said. “Be on offense. Put everything on the table.”

When asked if Ontario would impose a surcharge on electricity exports to the U.S., Ford replied, “It depends on where things go with the U.S. Ontario has the most to lose right now. I will do everything to protect the people of Ontario.”

Asked whether the U.S. could be trusted to honor a future agreement, Carney was direct.

“I have to be convinced, the negotiating team has to be convinced, and the premiers have to be convinced that an agreement is worth the paper it’s written on,” he said.

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