Canada’s Carney resists strong reaction after Trump's latest 10% tariff hike

Canadian Prime Minister Carney gave a short answer when reporters asked him about President Donald Trump’s new plan to raise tariffs on Canadian goods.

Carney did not argue or rant. He simply said Canada is prepared to restart trade discussions with the United States at any time. Speaking in Malaysia at the Association of Southeast Asian Nations meeting, he said:

“Canada stands ready to build on the progress that we had been making in our negotiations or discussions with our American counterparts.”

As Carney traveled in Asia, Trump announced an additional 10% tariff on Canada. The move was a response to a TV advertisement produced by the province of Ontario and broadcast in the United States.

The ad used clips of former President Ronald Reagan criticizing tariffs. Ontario Premier Doug Ford had already said he would stop the ad after the weekend, but Trump went ahead with the tariff escalation.

Trump had said, “Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now.”

He then later told reporters on Air Force One that he did not plan to meet Carney while both leaders were in Asia for major global summits.

Carney focuses on talks, not theatrics

Carney stated that trade negotiations with the United States are the sole responsibility of the federal government. He said open talks remain “the best way forward.” He made clear that Canada wants structured, official discussions instead of public arguments.

Carney also said that his current trip is about expanding trade relationships beyond the U.S. market, with a long-term goal of doubling Canadian exports to non-U.S. markets over the next ten years.

During this press appearance, Carney did not take questions. He is expected to do so during a later scheduled session. At the moment, Canada faces a base U.S. tariff rate of 35%.

However, most Canadian goods are exempt because of rules under the U.S.-Mexico-Canada Agreement. Trump has not said whether the new 10% tariff will remove or change that exemption.

On top of the base rate, the U.S. also applies sector-specific tariffs. Canada’s steel and aluminum fall under a 50% tariff on foreign metals. Cars and trucks assembled in Canada are only partly exempt from Trump’s 25% tariffs on most foreign-made vehicles.

Canadian officials spent recent weeks negotiating tariff relief on metals, including a visit by Carney to the White House on October 7. But last Thursday, Trump halted all trade talks after seeing the Ontario TV ad.

Before leaving for Asia, Carney said, “We can’t control the trade policy of the United States.” He also noted progress had been made and repeated that Canada is ready to continue once the U.S. is willing.

Carney is spending nine days in Asia, including visits to Singapore and South Korea for the Asia-Pacific Economic Cooperation meeting. The goal is to promote Canadian trade across the region.

At the ASEAN summit, he spoke about reducing Canada’s heavy trade dependence on the U.S. and highlighted efforts to negotiate a free trade agreement with the ASEAN bloc.

He also pointed out that Canada can serve as an energy supplier, especially as the government pushes to speed construction of liquefied natural gas terminals on the Pacific coast.

In his remarks, Carney said, “Canada is a strong, reliable partner that has much of what the world wants.”

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