Carney Says Trump’s Tariffs Violate Free Trade Agreement, But He’s Open To Talks

Canadian Prime Minister Mark Carney on Monday said President Donald Trump’s latest 50% tariffs on a number of key goods from his country are the latest in a series of actions that violate the North American trade pact but noted that Canada is prepared to engage with the U.S. to address any “outstanding issues.”

Earlier on Monday, Trump signed an order imposing 50% tariffs on a range of Canadian goods, including wine, dairy, cement, furniture, and ice hockey gear.

The tariffs were imposed under Section 338 of the Tariff Act of 1930, an obscure Great Depression-era law that allows presidents to impose tariffs up to 50% on countries deemed to be discriminating against U.S. goods.

The White House’s statement noted that the tariffs against Canada are in response to its discrimination against U.S.-made cars, alcohol and dairy goods and they will go into effect in 30 days.

Carney’s statement noted that this was the latest in a series of unilateral actions taken by the U.S. which violated the United States–Mexico–Canada Agreement—which Trump helped negotiate during his first term.

In response to the White House’s comments about discrimination, the Canadian leader said his country has “merely matched” Trump’s earlier tariff on Canada’s auto sector.

Carney stopped short of threatening retaliatory tariffs and instead said his country is ready to “engage intensively to address outstanding issues with the U.S.”

Carney’s statement added: “Canada has made a series of detailed and comprehensive proposals to resolve this dispute and to modernize CUSMA. We stand ready to intensify those discussions in the coming weeks…This trade dispute has raised costs for families, particularly in the U.S.”

Unlike Carney’s more guarded statement, Ontario Premier Doug Ford, who has called out Trump’s tariffs in the past, tweeted: “I’ll never stop fighting to protect Ontario. If these tariffs proceed, Canada should respond tariff for tariff, dollar for dollar.”

In a statement after the tariffs were announced, U.S. Trade Representative Jamieson Greer attacked the Canadian government, saying: “Canada, unlike other partners and allies, continues to retaliate against the United States for its efforts to rebalance trade and protect U.S. industry in national-security sensitive sectors…Specifically, Canada has taken U.S. alcohol products off Canadian shelves, given better market access to dairy products from the European Union, and has put a cap on U.S. vehicle exports to Canada from companies reshoring to the United States.”