Canada ramps up trade talks as US threatens tariffs

Justin Trudeau announced Thursday that Canada is accelerating negotiations with the United States to secure a comprehensive trade agreement, while warning that the government is ready to act if President Donald Trump's announced 50% tariffs on a range of Canadian products are imposed on August 19.

Trudeau told reporters after meeting provincial and territorial leaders in Charlottetown, Prince Edward Island, that “everything’s on the table” if an accord is not reached before the tariffs begin, but added that responding in advance would be “counterproductive at this stage.”

The proposed tariffs would cover items such as honey, liquor, cement, dairy, certain wood products and hockey sticks, while excluding energy, potash, fish and critical minerals. They would also affect goods previously exempt under the United States-Mexico-Canada Agreement, which the United States has not renewed, prompting a new round of talks that could extend for years.

Trudeau suggested the tariff threat may be a negotiating tactic, noting that the United States has used “an outsized tariff associated with that deadline” in past trade negotiations.

“We need a united Team Canada approach,” said Prince Edward Island Premier Rob Lantz, emphasizing cooperation between provinces, territories and the federal government.

“We need a strong plan. Be on offense. Put everything on the table,” said Ontario Premier Doug Ford, who warned that Ontario could face the greatest losses and would take steps to protect its residents.

Trade Minister Dominic LeBlanc described the U.S. move to target countries over forced-labor concerns as “not unexpected,” and said Canada shares the U.S. goal of keeping such goods out of supply chains. He pledged continued constructive engagement with the United States on this and other issues.

Analysts at Desjardins estimate the tariffs could affect about $28 billion in Canadian exports to the United States, roughly 5% of annual U.S. imports from Canada, and could dampen business confidence and investment plans. The provinces most likely to feel the impact include Ontario, Quebec and British Columbia.

Trudeau also highlighted efforts to diversify Canada’s trade partnerships beyond the United States, stating that the country will “do whatever it takes to build our strength at home and support Canadian families, workers, farmers and businesses.”