Carney Won’t Rule Out Retaliation Over New U.S. Tariff Threat

Ottawa – Prime Minister Mark Carney told reporters on Tuesday that Canada is not closing the door on a retaliatory response to the United States’ fresh tariff threat. He said the government will, frankly, “do whatever it takes” if Washington’s 50 % levies go into force on Aug. 19.

The tariffs, announced by President Donald Trump under Section 338 of the 1930 Tariff Act, target a handful of Canadian exports – dairy, certain alcoholic beverages and some auto‑related items – that the White House claims violate the rules of the new Canada‑U.S‑Mexico Agreement (CUSMA). They do not touch potash, energy, fish or the other sectors already subject to separate duties.

Carney, who met with Trump the same morning, said the two leaders agreed to “intensify negotiations in the coming weeks.” He added that Canada‑U.S. Trade Minister Dominic LeBlanc would convene the bilateral Advisory Council that afternoon, while provincial premiers would get a call‑in to discuss the looming threat.

Later in the day the premier’s gathering will turn into an in‑person meeting in Charlottetown, the first of its kind in months, where the federal team hopes to press the United States to roll back the Section 232 measures that still hit Canadian aluminium, steel, forest products and pharmaceuticals.

“We have a situation where the American tariffs will come into effect in 29 days, and we will look at all options in terms of how we would respond,” Carney said, pausing before noting that the response would be “comprehensive.” His tone was measured but firm – a blend of diplomatic caution and the occasional sigh that you’d expect from a leader juggling a global trade dispute.

In a brief exchange with reporters, Trump brushed off Canada’s objections, insisting the move was about “fairness” and claiming previous U.S. presidents had been “soft” on Canadian trade practices. He added, almost off‑hand, that “they need us to survive.”

For Canada, the stakes are high. The affected sectors represent a sizeable chunk of the country’s export basket, and the 50 % surcharge would slam prices for U.S. consumers and hurt Canadian producers. Carney reminded listeners that Canada has already offered “a series of comprehensive and detailed proposals” to modernise CUSMA, hoping the United States will see a path forward without resorting to punitive duties.

While the prime minister stopped short of spelling out a specific counter‑measure, his language left little doubt that Ottawa is prepared to explore a range of tools – from targeted tariffs of its own to WTO challenges – should the U.S. follow through on Aug. 19. As the clock ticks, both sides appear to be bracing for a tense few weeks of back‑channel talks and public posturing.

All eyes remain on the upcoming advisory council meeting and the Charlottetown summit, where the hope is that dialogue can replace digression and keep the north‑south trade relationship from spiralling further into retaliation.