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Canadian PM Carney calls latest US trade bans 'modest', signals no retaliation
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Canadian Prime Minister Mark Carney described the latest U.S. trade measures against Canada as having a 'modest' overall impact, signaling that his government does not plan to retaliate. The Trump administration escalated the trade war on September 8 by banning imports of alcoholic beverages, whey protein, and motorcycles, restricting Canadian companies from selling to U.S. government contractors, and adjusting tariff lists. Speaking in Banff, Alberta, Carney acknowledged the measures are significant for individual sectors but relatively modest compared to previous U.S. actions. He emphasized focusing on strengthening Canada's domestic economy and diversifying trade relationships rather than retaliating. Carney confirmed recent conversations with Trump on geopolitical issues but did not clarify if trade was discussed. He expressed readiness to negotiate professionally at any time, believing a mutually beneficial agreement respecting both sides' sovereignty is possible. The import bans affect about $1 billion in U.S. imports from Canada, many already under 50% tariffs. Bloomberg economists noted limited macroeconomic impact but increased uncertainty. The bans take effect in roughly three weeks, potentially allowing room for negotiations.
Source report
Source: Bloomberg
Canadian Prime Minister Mark Carney stated that the latest round of US trade measures against Canada will hurt some businesses but will have an overall “modest” impact, signaling that his government does not intend to retaliate.
The Trump administration escalated its trade war with Canada on September 8 by announcing import bans on a range of goods, including alcoholic beverages, whey protein, and motorcycles. The White House also restricted Canadian companies from selling products to US government contractors and adjusted the list of Canadian products subject to 50% tariffs.
Speaking to reporters in Banff, Alberta, on Thursday, where he was meeting with his cabinet, Carney said:
“We fully recognize that for individual companies and individual sectors, these measures are significant. But I also recognize that compared to other actions taken by the US government, these are relatively modest measures.”
When asked whether Canada would retaliate, Carney said the best response is to focus on his government’s plans to strengthen the domestic economy and diversify trade relationships. Carney confirmed recent conversations with Trump regarding geopolitical issues, but it remains unclear whether trade topics were discussed.
Carney stated that the Canadian government is “ready to sit down and negotiate in a professional manner at any time,” adding:
“We believe there is a possibility of reaching a mutually beneficial agreement that respects both sides’ sovereignty and serves the interests of both countries.”
Background
- The US and Canada had spent weeks working toward an agreement to lower tariffs, but negotiations collapsed on August 21.
- Trump’s Section 338 tariffs took effect the following day.
- Carney responded on September 8 with retaliatory tariffs, leading to this week’s US actions.
- The import bans will affect approximately $1 billion worth of US imports from Canada, though many of these goods were already subject to 50% tariffs.
Economic Impact
Bloomberg economists noted that the move represents limited actual escalation and is unlikely to have macroeconomic impacts on either economy, but it will increase uncertainty. The bans are expected to take effect in about three weeks, potentially leaving room for negotiations.
Original article: Bloomberg
Source
bloombergWestern
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