US President Donald Trump has imposed a 50% tariff on a wide range of goods imported from Canada, in retaliation for what he called "unequal treatment" of US cars, dairy and alcohol. Consumer items such as wine and hockey sticks and industrial goods such as cement are among the goods targeted. However, several key exports will be spared, such as energy, potash, critical minerals and fish.
Canadian Prime Minister Mark Carney responded by saying Canada stood ready to "intensify" trade talks with US in the coming weeks. The White House said the duties would take effect in 30 days and mark a major escalation in trade tensions between the North American neighbours. Carney on Tuesday said that the "country would continue to support its people and businesses", shortly after Trump slapped tariffs on select Canadian goods in the areas of dairy, alcoholic beverages and motor vehicles.
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"This is the latest in a series of unilateral US trade actions that began with the US imposing a series of tariffs in direct violation of the Canada-United States-Mexico Agreement (CUSMA), the free trade agreement between Canada, the United States, and Mexico," Carney said in a statement posted on X.
He said, "These include tariffs on the Canadian auto sector, in violation of CUSMA. Canada, as is its right, has merely matched those measures." The Canadian Prime Minister added that "in response to these measures and threats to Canadian sovereignty, provinces, territories-- Canadians from coast to coast to coast have stood together, taking the necessary actions to support our economy and defend our workers, farmers, businesses, and families."
"Recognising that the US has been transforming all of its trade relationships, including those covered under CUSMA, over the past 18 months, Canada has made a series of detailed and comprehensive proposals to resolve this dispute and to modernise CUSMA. We stand ready to intensify those discussions in the coming weeks," Carney said
Underlining that Canada believes in the benefits of "free and fair trade, he said, "Canada believes in the benefits of free and fair trade, as evidenced by our new government signing more than 20 new economic and security partnerships. This trade dispute has raised costs for families, particularly in the US. Canada stands ready to engage intensively to address outstanding issues with the US to the mutual benefit of our citizens."
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Carney added, "In all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families." His response comes after the United States on Monday (US local time) announced a fresh wave of additional 50 per cent tariffs on certain Canadian goods, in what it called was a response to the "discriminatory treatment" of American products- in the sectors of motor vehicles, dairy and alcoholic beverages and are set to take place 30 days after the signing of the proclamations by Trump.
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