Canada readies response as US 50% tariffs loom

Prime Minister Mark Carney told reporters that Canada is keeping all possible measures under review as the United States prepares to impose 50% tariffs on roughly C$20 billion of Canadian imports on August 19. He said the options include further diversifying trade away from the United States and providing support to sectors most exposed to the duties.

Carney met with provincial and territorial leaders on Thursday to coordinate a response and emphasized that “there’s a full range of things we can do in that regard,” without specifying any punitive steps. He added, “We are going to support Canadian workers, families, businesses, full stop.”

The U.S. administration justified the tariffs by alleging “unequal treatment” of American cars, dairy and alcohol in Canada, targeting consumer goods such as wine and hockey sticks as well as industrial products like cement. Exemptions include energy, potash, critical minerals and fish.

Both governments have about a month to negotiate before the levies take effect, a deadline Carney described as both a pressure tactic and an opportunity to advance talks. Ongoing negotiations to modernise the North American trade pact with Mexico have progressed slowly, and U.S. Trade Representative Katherine Tai indicated that interim agreements with Canada and Mexico are hoped to be ready for review before year-end, though more complex issues may extend into next year.