Canadian Prime Minister Mark Carney indicated Thursday that Canada might refrain from further retaliatory measures against President Donald Trump’s recent trade actions, describing them as “relatively modest” in comparison to previous U.S. escalations.
These comments followed Washington’s recent decision to ban certain Canadian dairy products, motorcycles, and alcoholic beverages, which came after Canada implemented its own retaliatory tariffs. The U.S. also moved to restrict Canadian products from long-term U.S. government contracts.
Carney stated that the Canadian government was still reviewing the measures and acknowledged their potential for significant impact on specific companies and industries. He also noted that some of the new U.S. tariffs replaced previously removed ones.
"We also recognize that, in the context of other things that the U.S. administration has done ... that these are relatively modest measures," Carney said at a cabinet retreat in Banff, Alberta. Derek Holt, an economist at Scotiabank, characterized the latest U.S. measures as more of an attempt by the Trump administration to "save face" rather than a substantial escalation, with a limited overall economic impact on Canada.
Carney also mentioned ongoing communication with President Trump, with whom he has spoken “a couple of times” recently regarding global issues like Ukraine and Iran, despite the deepening trade dispute. "We continue to have to work with the United States. We can compartmentalize across this," Carney said, emphasizing that these discussions focused on geopolitical, defense, and security matters and did not signal a resumption of trade negotiations.
Carney’s stated priority is to bolster Canada’s economy, rather than solely reacting to U.S. trade moves. "The biggest impact we can have here is to focus on what we can control: building at home, diversifying abroad and delivering for Canadians," he stated.
In contrast, Ontario Premier Doug Ford adopted a more confrontational stance, expressing hope that Republicans would lose control of the U.S. House and Senate in the upcoming midterm elections, holding Trump accountable for the trade war. "Hopefully he’s going to lose the Senate. He’s going to lose Congress. I hope so, and hold him accountable," Ford said, while adding that Canada would not interfere in U.S. elections.
Ford has been a vocal critic of Trump, accusing him of attempting to move industries from Ontario to the U.S. and characterizing the president as unreliable. "He could make a deal today and then change his mind. And we’ve seen that over and over again," Ford said. Despite his criticism, Ford believes Trump desires a trade agreement before the midterms and advocated for Canada to return to negotiations promptly.
Carney also indicated a willingness to resume negotiations, stating that Canada is prepared to return to the table provided talks are conducted professionally and respect Canadian sovereignty. "We are always ready to sit down" and negotiate, Carney said, expressing belief that "there is a mutually beneficial deal possible that respects our sovereignty and is in the interests of both countries."
While retaliation remains an option if it serves Canadian interests, such as in the case of steel tariffs to protect domestic companies, Carney did not commit to further retaliatory measures in response to Trump's latest actions.
Ford credited Trump with indirectly strengthening Canada by compelling it to reduce its reliance on the U.S. economy, suggesting that Trump's actions had "woken us up" and "united the country like I’ve never seen before."