Prime Minister-designate Mark Carney said Canadian tariffs imposed on the United States will remain in place until the U.S administration demonstrates “respect” in economic relations between the countries and commits to free trade.
Carney, who was chosen to lead the Liberal Party over the weekend, made the comments on March 11 in reaction to U.S. President Donald Trump’s threat to double tariffs on Canadian steel and aluminum to 50 percent. The United States’ universal 25 percent tariffs on the two materials are set to take effect on March 12.
“My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade,” Carney said in a statement on social media, echoing similar comments he made in his victory speech on March 9.
Carney added his government “will ensure our response has maximum impact in the US and minimal impact here in Canada, while supporting the workers impacted.”
White House spokeswoman Karoline Leavitt said on March 11 that Trump has not spoken with Carney yet.
As new Liberal leader, Carney will be appointed prime minister after Justin Trudeau steps down. The change is expected to take place in the coming days, after which Carney will form his cabinet.
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Carney, a former central bank governor in Canada and the United Kingdom, is taking over during a period of economic turbulence and tension between the countries amid Trump’s tariff threats.
Ontario Premier Doug Ford announced on March 10 his province would be imposing a 25 percent surtax on its energy exports to the U.S. states of New York, Michigan, and Minnesota, impacting 1.5 million households. Ford cancelled the measure the next day, after speaking with U.S. Commerce Secretary Howard Lutnick.
The two issued a joint statement saying they would hold a meeting in Washington on March 13 to discuss a “renewed” United States-Mexico-Canada (USMCA) free trade deal ahead of April 2, when the United States will announce reciprocal tariffs on its trading partners. Those tariffs will target foreign barriers such as duties, subsidies, and taxes impacting U.S. businesses.
Earlier the same day, in response to Ontario’s electricity surtax announcement, Trump responded he would double the tariffs on Canadian steel and aluminum and declare a “national emergency on electricity” within the affected areas.
The president also criticized Canadian tariffs on U.S. dairy products and other goods and said if they are not dropped Canada will be hit with increased tariffs on April 2. He said tariffs on Canadian-made cars will “permanently” shut down manufacturing in Canada.
Trump also criticized Ford’s decision to to tax electricity, saying it “so affects the life of innocent people” and that Canada would pay a “big” financial price in response.
Trump’s tariffs on Canada and Mexico related to border security and fentanyl concerns kicked in on March 4, but shortly after, a one-month exemption was granted to U.S. carmakers. Trump subsequently added another exemption for goods covered by the USMCA free trade deal.
How to deal with the economic uncertainty stemming from U.S. action has become the core political issue in Canada.
Conservative Party Leader Pierre Poilievre said on March 11 Canada should retaliate by raising its own tariffs on U.S. steel and aluminum to 50 percent if Trump goes ahead with his threat.
“If the President applies further tariffs as he has threatened, we will hit back on those as well,” Poilievre said in a statement.
Canada has already applied CA$30 billion in tariffs on U.S. goods as a retaliatory measure. Ottawa paused its second wave of tariffs worth CA$125 billion after Trump exempted goods and services covered by the USMCA.
