Designated Prime Minister Carney announces Canada will impose tariffs on US until respect is demonstrated.
Prime Minister-designate Mark Carney stated that Canadian tariffs on the United States will stay in place until the U.S administration shows “respect” in economic relations and commits to free trade.
Carney, who was selected to lead the Liberal Party, made these remarks on March 11 in response to President Donald Trump’s threat to increase tariffs on Canadian steel and aluminum to 50 percent. The U.S. universal 25 percent tariffs on these materials are scheduled to take effect on March 12.
Carney also stated that his government will ensure the response has the greatest impact in the US and minimal impact in Canada while supporting the affected workers.
White House spokeswoman Karoline Leavitt confirmed on March 11 that Trump has not yet communicated with Carney.
As the new Liberal leader, Carney is set to become prime minister after Justin Trudeau steps down, with the transition expected to occur in the coming days, followed by the formation of Carney’s cabinet.
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 stated on March 10 that his province would impose a 25 percent surtax on energy exports to certain U.S. states, affecting 1.5 million households. However, Ford reversed this decision after discussions with U.S. Commerce Secretary Howard Lutnick the following day.
In response to Ontario’s electricity surtax announcement, Trump threatened to double tariffs on Canadian steel and aluminum and declared a “national emergency on electricity” in the affected areas.
He also criticized Canadian tariffs on U.S. dairy products and other goods, warning of increased tariffs on Canada if they are not removed by April 2. Additionally, he mentioned that tariffs on Canadian-made cars would result in the permanent shutdown of manufacturing in Canada.
Trump’s tariffs on Canada and Mexico related to border security and fentanyl concerns went into effect on March 4, with exemptions granted to U.S. carmakers shortly after. Another exemption was later added for goods covered by the USMCA free trade deal.
Dealing with economic uncertainty due to U.S. actions has become a central political issue in Canada.
Conservative Party Leader Pierre Poilievre suggested on March 11 that Canada should retaliate by raising its own tariffs on U.S. steel and aluminum to 50 percent if Trump proceeds with his threat.