Canadian Prime Minister Mark Carney said on Thursday that "everything’s on the table" if President Donald Trump’s threatened 50% tariffs take effect, while Ottawa intensifies negotiations before the Aug. 19 deadline.
Carney Holds Retaliation While Talks Continue
"If these tariffs, or other measures come into force, there’s a full range of things that we can do," Carney said after meeting premiers in Charlottetown, Prince Edward Island. He said retaliating immediately would be "counterproductive" while talks continue.
Trump announced the duties Monday under Section 338 of the Tariff Act of 1930. They cover liquor, dairy products, cement, honey, hockey sticks and some wood products, while excluding energy, potash, fish and critical minerals. The measures would also hit goods previously protected by the U.S.-Mexico-Canada Agreement.
The threat follows Washington’s decision not to extend the six-year-old trade pact, opening negotiations that could continue through 2036. Carney and Trump agreed this week to intensify discussions, even as Washington has made greater progress in separate talks with Mexico.
Carney suggested the deadline may be part of Washington’s negotiating strategy. "Normally there’s a deadline," he said. "Normally there’s an outsized tariff associated with that deadline."
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Tariff Threat Puts Key Provinces At Risk
Desjardins estimates the duties would affect about C$28 billion, or $19.8 billion, in annual exports, roughly 5% of Canadian shipments to the United States. Ontario, Quebec and British Columbia face the greatest exposure, while uncertainty could weaken investment and business confidence.
Provincial leaders urged Ottawa to prepare a forceful response. Ontario Premier Doug Ford said Canada should "be on offense" and keep "everything on the table," including a possible surcharge on electricity exports.
British Columbia Premier David Eby took a harder line. "There is not a chance in hell that U.S. alcohol is going back on the shelf in British Columbia," he said. Eby also said, "I feel sorry for Americans. If you can’t be friends with Canada, then you almost certainly do not have a friend anywhere in the world.”
Canada Looks Beyond United States Trade
Carney said Canada would keep diversifying trade beyond the United States regardless of the outcome. "Canada will do whatever it takes to build our strength at home and to support Canadian families, workers, our farmers, our businesses," he said.
The confrontation extends a broader tariff fight that has already triggered Canadian retaliation and provincial alcohol boycotts.
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