Canada-U.S. Trade War Could Drag On as Washington Weighs More Tariffs

The Canada-U.S. trade war could drag on, with U.S. Trade Representative Jamieson Greer warning that Washington could consider imposing additional retaliatory tariffs on Canadian goods as early as today.

Meanwhile, Prime Minister Mark Carney, in a video message to Canadians, said the country would have to pay a significant price for reducing its trade dependence on the United States. However, he stressed that failing to take action could have even more damaging consequences.

Carney said Canada has all the necessary tools to reduce its dependence on the U.S. and build a stronger, more prosperous economy. He acknowledged that major changes come at a cost, but said that cost would be small compared with the damage caused by simply sitting back and doing nothing.

According to Carney, the fight is about more than trade. It is about protecting Canadian identity, livelihoods and the future of the next generation.

The Prime Minister said he had warned last spring that the United States was trying to divide Canada, but stressed that “it will never happen.”

Carney also said that over the past year and a half, Canada has reached trade and defence agreements with 20 countries. He said Canadian businesses currently have tariff-free access to 1.5 billion consumers, with the government aiming to double that figure over the next six months.