The Canadian dollar softened modestly on the news earlir, extending a period of currency weakness tied to the broader tariff standoff with Washington. Carney’s measured tone, emphasising continued willingness to negotiate rather than immediate retaliation, may limit further downside for now, though markets will be watching closely for any sign Ottawa moves to match the new duties as it has done with previous US measures. The reference to more than 20 new economic and security partnerships signed by Canada’s government is likely intended to reassure investors that Ottawa has options beyond the US relationship, even as the core CUSMA dispute remains unresolved.
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Prime Minister Mark Carney called the latest US tariff move a violation of CUSMA and said Canada remains ready to intensify trade talks, as the Canadian dollar weakened further on the announcement.
Summary:
- The US announced its intention to impose a new 50% tariff on a significant number of Canadian goods
- Prime Minister Mark Carney called the move the latest in a series of unilateral US trade actions that began with tariffs he says violate CUSMA
- Carney said Canada has only matched US measures, including on the auto sector, in response
- He said Canada has made detailed and comprehensive proposals to resolve the dispute and modernise CUSMA, and is ready to intensify those discussions in the coming weeks
- Carney noted Canada’s government has signed more than 20 new economic and security partnerships, and said the trade dispute has raised costs for families, particularly in the US
- He said Canada will take any measures necessary to support Canadian workers, farmers, businesses and families
Canadian Prime Minister Mark Carney said Tuesday that Canada remains ready to intensify trade talks with the United States after Washington announced its intention to impose a new 50% tariff on a significant number of Canadian goods, a move that weakened the Canadian dollar further. “Today, the United States administration announced its intention to impose a new 50% tariff on a significant number of Canadian goods,” Carney said in a statement.
Carney characterised the move as the latest in a series of unilateral US trade actions that began with tariffs he said were imposed in direct violation of the Canada-United States-Mexico Agreement, including duties on the Canadian auto sector. He said Canada has, as is its right, merely matched those measures in response, and that provinces, territories and Canadians nationwide have stood together to support the economy and defend workers, farmers, businesses and families amid what he described as threats to Canadian sovereignty.
The prime minister said Canada has made a series of detailed and comprehensive proposals to resolve the dispute and modernise CUSMA, acknowledging that the US has been transforming all of its trade relationships, including those covered under the agreement, over the past 18 months. He said Canada stands ready to intensify those discussions in the coming weeks.
Carney pointed to Canada’s broader trade posture as evidence of its commitment to free and fair trade, noting the government has signed more than 20 new economic and security partnerships since taking office. He argued the ongoing dispute has raised costs for families, particularly in the United States, and said Canada stands ready to engage intensively with Washington to address outstanding issues to the mutual benefit of both countries’ citizens.
He closed by saying that, regardless of how the dispute unfolds, Canada will work relentlessly and take any measures necessary to build strength at home and support Canadian workers, farmers, businesses and families. The statement did not indicate whether Canada intends to impose retaliatory measures in response to the newly announced tariff.
This article was written by Eamonn Sheridan at investinglive.com.