Canada PM Carney: 'Full range' of retaliatory measures ready if Trump's 50% tariffs take effect in August

By: Shomik Sen Bhattacharjee Source: Benzinga / Yahoo Finance Reading Time: 5 min

Canadian Prime Minister Mark Carney stated on Thursday that "everything's on the table" if President Donald Trump's threatened 50% tariffs take effect, as Ottawa intensifies negotiations ahead of the August 19 deadline.

Carney Holds Retaliation While Talks Continue

"If these tariffs, or other measures come into force, there's a full range of things that we can do," Carney said after meeting premiers in Charlottetown, Prince Edward Island. He noted that immediate retaliation would be "counterproductive" while discussions are ongoing.

Trump announced the duties on Monday under Section 338 of the Tariff Act of 1930. The measures cover:

• Liquor
• Dairy products
• Cement
• Honey
• Hockey sticks
• Some wood products

The tariffs exclude energy, potash, fish, and critical minerals. The measures would also affect goods previously protected by the U.S.-Mexico-Canada Agreement (USMCA).

The threat follows Washington's decision not to extend the six-year-old trade pact, opening negotiations that could continue through 2036. Carney and Trump agreed this week to intensify discussions, even as Washington has made greater progress in separate talks with Mexico.

Carney suggested the deadline may be part of Washington's negotiating strategy. "Normally there's a deadline," he said. "Normally there's an outsized tariff associated with that deadline."

Tariff Threat Puts Key Provinces at Risk

Desjardins estimates the duties would affect approximately C$28 billion (US$19.8 billion) in annual exports — roughly 5% of Canadian shipments to the United States.

Provinces most exposed:

• Ontario
• Quebec
• British Columbia

The uncertainty could weaken investment and business confidence across the country.

Provincial leaders urged Ottawa to prepare a forceful response:

• Ontario Premier Doug Ford said Canada should "be on offense" and keep "everything on the table," including a possible surcharge on electricity exports.
• British Columbia Premier David Eby took a harder line: "There is not a chance in hell that U.S. alcohol is going back on the shelf in British Columbia." He added, "I feel sorry for Americans. If you can't be friends with Canada, then you almost certainly do not have a friend anywhere in the world."

Canada Looks Beyond U.S. Trade

Carney said Canada would continue diversifying trade beyond the United States regardless of the outcome. "Canada will do whatever it takes to build our strength at home and to support Canadian families, workers, our farmers, our businesses," he said.

The confrontation extends a broader tariff fight that has already triggered Canadian retaliation and provincial alcohol boycotts.

Image via Shutterstock

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