Canada’s Carney Will Keep Tariffs Until US Commits to Free Trade

Canada will keep its trade retaliation in place until the US lifts its own tariffs and commits to free trade, said Mark Carney, who will succeed Justin Trudeau as Canada’s prime minister within days.

“My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade,” Carney said in a statement.

Carney’s comment comes after US President Donald Trump pledged to increase tariffs on Canadian steel and aluminum to 50% to retaliate against a move by Ontario to add a 25% surcharge to electricity exports to the US. Ontario is Canada’s most populous province and exports electricity to Minnesota, New York and Michigan.

Canada also has 25% counter-tariffs in place on C$30 billion worth of US goods imported to the country, a move made last week after Trump imposed economy-wide tariffs on Canadian imports.

Trump later exempted Canadian goods covered under the North American free trade pact, but Canada did not remove its retaliation. Instead, Trudeau only promised to delay a second round of counter-tariffs that would hit a further C$125 billion in US goods.

“President Trump’s latest tariffs are an attack on Canadian workers, families and businesses,” Carney said in the statement. “My government will ensure our response has maximum impact in the US and minimal impact here in Canada, while supporting the workers impacted.”

Carney is expected to be sworn in as Canada’s prime minister by the end of the week. On Sunday he was elected the new leader of the Liberal Party with a dominant 86% of the vote among party members.

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