Prime Minister Carney says Canada is ready to respond if Trump's new
tariffs go into effect
[July 24, 2026] By
JIM MORRIS
VANCOUVER, British Columbia (AP) — Prime Minister Mark Carney said
Thursday that Canada is intensifying negotiations with the United States
to reach a comprehensive trade deal but is prepared to respond should
President Donald Trump’s threat of 50% tariffs on Canadian goods go into
effect.
The new tariffs, announced by Trump on Monday, are scheduled to come
into effect Aug. 19.
“If these tariffs, or other measures come into force, there’s a full
range of things that we can do in that regard,” Carney said after
meeting with Canada’s premiers and territorial leaders in Charletown,
Prince Edward Island.
Carney said “everything’s on the table” if an agreement can’t be reached
before the tariffs kick in.
“We don’t need to respond in advance,” he said. “In fact, I think it
would be counterproductive at this stage to respond in advance.”
The new tariffs cover a wide range of goods, including honey, liquor,
cement, dairy products, some wood products, hockey sticks and other
items. They exclude energy products, potash, fish and critical minerals,
but would include goods previously protected from import taxes by the
United States-Mexico-Canada Agreement, or USMCA. That 2020 trade pact
was not renewed by the U.S., triggering a new set of negotiations that
could run until 2036.
Carney said the tariff threat could be a negotiation tactic by the U.S.
“We’ve seen a series of trade negations that the U.S. has undertaken,
and normally there’s a deadline,” he said. “Normally there’s an outsized
tariff associated with that deadline.”
Carney believes there is a willingness among U.S. officials to reach a
trade deal.
Prince Edward Island Premier Rob Lantz said the provinces and federal
government remain united.
“We need to have a united Team Canada approach,” he said. “Canada is at
it’s best when provinces and territories and the federal government work
together."
Carney said Canada will continue to build and diversity its economy.
“In all circumstances, irrespective of the outcome of these
negotiations, Canada will do whatever it takes to build our strength at
home and to support Canadian families, workers, our farmers, our
businesses,” he said.
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Prime Minister Mark Carney speaks to reporters during the closing
news conference at the First Ministers Meetings in Charlottetown,
Prince Edward Island, Canada, on Thursday, July 23, 2026. (Darren
Calabrese/The Canadian Press via AP)
 The country is also looking to build
trade relationships with countries other than the U.S.
“We’re diversifying our partnerships abroad,” he said.
An analysis by Desjardins, one of Canada’s largest financial
institutions, says the tariffs will impact about $28 billion
Canadian ($19.8 billion) worth of annual Canadian exports to the
United States. That’s about 5% of what the U.S. imports from Canada
each year.
“Beyond the direct trade effects, heightened uncertainty could
dampen business confidence and curb investment plans,” the analysis
says.
The Canadian provinces most impacted would be Ontario, Quebec and
British Columbia.
Prior to the meeting Ontario Premier Doug Ford said Canada needs to
show strength.
“We need a strong plan,” he said. “Be on offense. Put everything on
the table.”
Ford was asked if he would put a surcharge on electrically his
province sells to the U.S.
“It depends where we go with the U.S.,” he said. “Ontario has the
most to lose right now. I will do everything to protect the people
of Ontario.”
Later Thursday, the Trump administration included Canada among the
dozens of countries it’s hitting with tariffs citing forced labor in
supply chains.
In a statement, Dominic LeBlanc, the Canada-U.S. Trade Minister,
said the move “is not unexpected.”
LeBlanc said Canada shares the U.S.’s objective of ensuring that
goods produced with forced labor don’t enter the supply chain.
“We will continue engaging constructively with the United States on
this matter, as well as other outstanding issues, over the coming
weeks to the mutual benefit of our citizens,” LeBlanc said.
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