A trade standoff between Washington and Ottawa is heading toward a deadline, with Canadian Prime Minister Mark Carney warning that Canada has a “full range” of retaliatory options ready if President Trump’s newly announced 50% tariffs on Canadian goods take effect next month.
Trump imposed the tariffs — covering products including dairy, cement, hockey sticks, cars and alcohol — through a trade proclamation, framing them as a response to what he’s called discriminatory treatment of American products by Canada. They’re set to take effect Aug. 19, or Aug. 20 by some reporting, layering on top of tariffs Canada is already paying: 25% on steel and aluminum, 10% on softwood lumber, and a separate 12.5% levy tied to forced-labor concerns implemented last month.
Speaking after a meeting with Canadian premiers in Charlottetown, Prince Edward Island, Carney said retaliating immediately would be “counterproductive” while negotiations for a broader trade deal continue, but made clear Canada wouldn’t sit idle if the tariffs go through. Ontario Premier Doug Ford struck a more combative tone, calling for Canada to respond “tariff for tariff, dollar for dollar” if the measures proceed.
Carney has suggested the tariff threat may be more of a negotiating tactic than a settled policy, noting that the U.S. has typically paired trade deadlines with an “outsized tariff” as pressure. Whether that reading holds will become clear in the coming weeks, as both governments say talks are intensifying ahead of the Aug. 19 cutoff — the latest flashpoint in a trade relationship that has been tense for most of the year.