Canada may retaliate against new Trump tariffs, Prime Minister says

OTTAWA — Canada will take necessary steps to defend its interests in a trade dispute with the United States, including possible retaliatory measures, Prime Minister Mark Carney said on Thursday after Washington announced new tariffs on Canadian goods.

U.S. President Donald Trump announced on Monday that new 50% tariffs on a range of Canadian products would take effect on August 19.

"We are intensifying our trade negotiations with the United States and will not hesitate to defend our interests if we have to," Carney told a meeting of provincial premiers in Charlottetown, Prince Edward Island, describing the U.S. measures as unwarranted.

"Everything's on the table if there's no agreement," he said, referring to possible countermeasures without providing details.

Trump and Carney agreed this week to accelerate bilateral trade discussions. The talks come after Trump decided on July 1 not to extend the United States-Mexico-Canada Agreement (USMCA) trade pact for another 16 years, leaving the agreement in place but subjecting it to annual reviews.

The United States is negotiating separately with Canada and Mexico, and Washington has said it is making more progress with Mexico. This has raised concerns that the U.S. could pressure Canada to accept concessions similar to those agreed upon by Mexico.

Carney said Canada wants to secure a broad trade agreement rather than separate deals covering individual industries.

Although Carney said the federal government and provincial leaders were united in their response, Canada's 10 provinces remain divided over how to handle the dispute.

Alberta and Saskatchewan, which export crude oil and potash, respectively, to the United States, have rejected using export restrictions or duties as a way to pressure Washington.

Ontario Premier Doug Ford called for Canada to respond to U.S. tariffs "dollar for dollar," while acknowledging the difficult position facing Carney.

"One day, the prime minister is with him side by side, and the next thing, President Trump turns on him like a rabid dog," Ford said.

British Columbia Premier David Eby said his province could consider limiting U.S. access to critical mineral exports, including copper, zinc and aluminum.

"If the prime minister calls British Columbia and says he needs support with some big sticks to have conversations at the table, then we will be there," Eby said.

Canada and the United States are continuing negotiations as both sides seek to avoid a wider trade conflict that could affect major industries and supply chains across North America. -Reporting by David Ljunggren; Editing by Chizu Nomiyama and Cynthia Osterman/Reuters