Carney says Canada ready to respond if Trump tariffs hit

Prime Minister Mark Carney said Thursday that Canada will do “whatever it takes to defend and support Canadian workers, farmers, businesses, and families” in the ongoing trade war with the United States.

Speaking to Canada’s 13 provincial and territorial premiers at a Council of the Federation meeting in Charlottetown, Prince Edward Island, Carney called Trump’s Monday threat of 50% tariffs on roughly C$20 billion of Canadian goods “unwarranted.” Asked later about retaliation if no deal is reached before the August 19 deadline, Carney told reporters “everything is on the table depending on the outcome of the negotiations.”

He further stated that a preemptive response would be futile at this point and mentioned that diversification of trade relations away from the U.S., as well as strengthening of vulnerable industries, would constitute practical steps in this regard.

Carney spoke directly with Trump on Tuesday morning, per Global News, and the two leaders agreed to intensify trade negotiations. That gives negotiators about 27 days.

What Trump is targeting and what he is sparing

The United States announced the new duties on Monday, citing what it called “unequal treatment” of American cars, dairy, and alcohol by Canada. Everyday consumer goods sit in the crosshairs, including wine and hockey sticks, alongside industrial products such as cement, per BBC News.

Several major exports were spared. Energy, potash, critical minerals, and fish products are not targeted here, thereby limiting the damage to the biggest natural resource industries in Canada and giving reasons why Alberta and Saskatchewan are less aggressive about retaliation.

Jamieson Greer, US Trade Representative, on Wednesday defended the new tariff duties to Congress by saying that they are an integral part of an effort to protect American workers and reduce the trade deficit which, according to him, is a “national emergency.”

Greer was hoping to conclude interim agreements with Canada and Mexico before the end of the year but admitted that more challenging aspects, such as rules of origin for cars, labor and environmental standards, may take until 2027.

Premiers split over how hard Canada should retaliate

Ontario Premier Doug Ford has emerged as the most aggressive voice, advocating at the meeting for withholding Canada’s potash and oil exports to the US in what he called an effort to “dismantle” American supply chains dependent on Canadian resources. Ford said Ontario is “not going to keep rolling over for Donald Trump.”

Alberta Premier Danielle Smith took the opposite position. Smith told Global News that Carney is “wise” not to retaliate for now and that “you don’t go into a discussion saying you’re going to punch somebody in the nose if they don’t give you what you want.”

Alberta and Saskatchewan have both ruled out export curbs or duties as pressure tools, per Reuters. Premier Andrew Furey of Newfoundland and Labrador said that “his province was 97 percent ‘tariff-free'” and did not agree with Ford’s dismantling rhetoric.

Carney’s trade strategy shifts from patience to pressure

As Cryptopolitan reported in October 2025, Carney’s earlier response to Trump tariff threats was a diplomatic “we’re ready when you are” posture from Malaysia, without retaliation. This position changed after President Trump increased tariffs by 10 percent over an Ontario advertisement campaign, and then ended the negotiations.

The trade war began in March 2025 when Trump imposed 25% tariffs justified by fentanyl concerns. Canada retaliated. By August 2025, Trump had raised tariffs to 35% and Canada rolled back some of its retaliatory measures on USMCA-compliant consumer goods.

October 2025 saw the Reagan-ad blowup and a suspension of talks. Trump then threatened 100% tariffs in January 2026 over concerns about Chinese trade routing through Canada.

Monday’s 50% threat on $20 billion of goods is the third major escalation this year and the sharpest since talks collapsed in October. The full USMCA renegotiations were initiated on July 1, 2026, as Washington refused to extend the existing agreement.

About 85% of Canadian exports are presently imported into the US tariff-free via USMCA, according to earlier reports by Cryptopolitan, which provides Canada some advantage during the renegotiation process in case of implementation of the 50% tariff threat.

Ottawa has 27 days to avoid a tariff shock

Carney’s “everything on the table” remark leaves Ottawa with several possible responses, from retaliatory tariffs like Canada used in March 2025 to export limits, procurement restrictions, energy taxes, a WTO complaint, or coordinated action with G7 allies.

Trade Minister Dominic LeBlanc has been leading day-to-day negotiations with the White House. Foreign Minister Mélanie Joly floated European trade counter-measures at the meeting Wednesday, per Global News.

Smith argued domestic US pressure may also work in Canada’s favor. She noted softwood tariffs push US home prices up, food tariffs raise grocery costs, and steel-aluminum-auto tariffs hit consumer goods across the board, and that American voters are already feeling the effects.

Whether the “whatever it takes” framing translates to retaliation after August 19 depends on whether Trump’s threats materialize, whether the negotiating team can extract enough concessions in 27 days, and whether Ford or Smith’s provincial theory of the case prevails.