Prime Minister Mark Carney answers questions from reporters at a news conference in Ottawa. (The Canadian Press)
Prime Minister Mark Carney said Thursday his government will keep building Canada’s economy despite new U.S. tariffs. He stressed that Canadians want action at home, not endless disputes.
“Yes we are having discussions with the Americans but Canadians want us to focus here at home,” he told reporters in Ottawa.
Trump’s Tariffs Expand Globally
Last week, U.S. President Donald Trump raised tariffs on Canadian goods not covered by the Canada-United States-Mexico Agreement (CUSMA). The baseline tariff now sits at 35 per cent.
Early Thursday, he extended the tariff increases to goods from over 60 countries and the European Union. Rates now range from 10 per cent to 50 per cent, with Brazil hit hardest. The EU, Japan, and South Korea face 15 per cent duties. Bangladesh and Vietnam face 20 per cent, while Switzerland now pays 39 per cent.
These come on top of separate U.S. tariffs on steel, aluminum, copper, and cars.
Economic Impact in the U.S.
American tariffs have reached levels not seen since the 1930s. Research from a U.S. policy institute says Americans now face an average import tax of 18.3 per cent.
Ontario Premier Doug Ford warned that tariffs on Canada hurt American consumers. “A tariff on Canada is a tax on the American people,” he said. Ford added that Canada and other countries are seeking new trade partners.
Ford also criticized Trump’s treatment of allies, calling him “probably the most disliked politician in the world in Canada.”
Signs of Strain in the U.S. Economy
U.S. job growth has slowed. Inflation ticked up slightly in June, according to the Commerce Department. Trump recently fired the head of the agency that reports employment figures.
Legal challenges could also threaten his trade strategy. Judges in a U.S. appeals court questioned his use of emergency powers to impose duties under the International Economic Emergency Powers Act of 1977. A ruling is still pending.
Political Reactions in Canada
Conservative Leader Pierre Poilievre urged Ottawa to use targeted counter-tariffs to pressure Washington. “We need to narrowly target our counter-tariffs at things that maximize the impact on the Americans while minimizing impact on Canadians,” he said.
Carney signaled he could lift some counter-tariffs if it benefits Canada. But premiers are split. Ford wants tough retaliation, while Saskatchewan Premier Scott Moe supports easing measures.
Poilievre accused Carney of making too many concessions to Trump without results. He promised legislation to remove laws he says block production, if he wins a seat in the House of Commons in the upcoming Aug. 18 byelection.
