Carney Talks Challenges Ahead as Tariffs Take Effect

Prime Minister Mark Carney is letting Canadians know that moving away from the U. S. will have its downsides – but he believes the alternative would be much worse.

In a national video address released on Tuesday – just hours after Canada’s retaliatory tariffs began – Carney stressed Canada’s strategy to handle the U. S. trade war by forming new trade agreements with other nations to reduce dependency on the U. S.

“We have everything we need to pivot and prosper,” Carney stated. “That pivot will come at a cost. There’s always a cost to action. But it doesn’t come close to the cost of standing still.”

The video is part of a series Carney started last spring aimed at keeping Canadians informed about government policies and responses to U. S. trade moves.

Carney mentioned that these policies aim for Canada to emerge stronger and more resilient so “no country can ever hold us hostage, and that we can live how we want to live.”

During his video address, Carney again pointed fingers at the U. S., claiming they were trying to implement measures that would limit Canada’s ability to engage in trade with other countries, as well as hinder its efforts in promoting and protecting French language and culture.

Federal Conservatives kept pushing over the weekend for Carney to share all details of the agreement Canada rejected, asking for Parliament’s return before its scheduled date of Sept. 21.

“We’re asking for the prime minister to be straight-up. We know it’s not easy to negotiate with the U. S. president. But being open about costs, decisions, and plans is key for unity,” Poilievre stated at a news conference in Regina on Monday.

“The only people who haven’t seen [the deal] are the Canadian people. They deserve transparency so they can evaluate what we’re fighting for and against.”

‘Trying to break us’

In his address, Carney claimed Trump’s tariffs were meant to hurt certain Canadians more than others. The U. S. has repeatedly targeted Canada’s steel, aluminum, auto industry, and lumber, primarily affecting workers in Ontario, Quebec, and B. C., while those in Alberta and Saskatchewan felt less impact.

“In the spring of last year, I warned that America is trying to break us so they can own us. And I promised that that will never, ever happen,” Carney said during his video message.

Trump has openly speculated for nearly two years about making Canada a part of the U. S., often referring to the prime minister as “governor.”

Before taking office for his second term in January 2025, Trump dismissed using military force for annexation but suggested he might consider using “economic force” instead.

WATCH | What counter-tariffs could cost Canadians:

What counter-tariffs could cost Canadians

The trade conflict with the U. S. is moving into another phase as Canada puts dollar-for-dollar tariffs into effect. For The National, CBC’s Eli Glasner explains what these added costs might mean for Canadian shoppers.

Canada’s reciprocal tariffs began on Tuesday following Trump’s recent announcement of 50 percent tariffs targeting various products including honey, hockey sticks, milk, and cheese.

The range of Canada’s tariffs runs from 15% up to 50% aimed solely at items listed by the U. S., matching their export value: $27.8 billion.

“I don’t believe in escalating the conflict; that’s not constructive,” Carney explained during his address.

“But our tariffs are necessary for protecting our workers, companies, and communities. We can’t allow American goods into Canada without tariffs while they impose charges on our exports.”

Carney also shared some historical context in his address mentioning Benjamin Harrison’s administration back in 1890 when Ohio congressman William Mc Kinley pushed for imposing tariffs on Canada-who later became president himself.

“It put 50 percent tariffs on our exports heading into the U. S. Sound familiar?” Carney remarked.

“Mc Kinley’s 50 percent tariff was meant to make us dependent ultimately leading towards annexation by America; instead it had an opposite effect.”

“Rather than weakening us up north here , Canada became stronger. Instead of relying more heavily , we diversified how we conducted business. At same time inflation surged down south. They faced financial troubles along with economic depression lasting four years.”

Source link