Prime Minister Mark Carney promised to “act with purpose and with force” in response to U.S. President Donald Trump’s tariffs, pledging to reveal more on Thursday morning after speaking with Canada’s premiers.
“We're going to fight these tariffs with countermeasures. We are going to protect our workers, and we are going to build the strongest economy,” Carney told reporters.
“In a crisis, it's important to come together, and it's essential to act with purpose and with force, and that's what we will do.”
Earlier on Wednesday, Trump announced “reciprocal tariffs” on countries around the world beginning on April 3.
“That means they do it to us, and we do it to them — very simple,” the president said at an event in the White House Rose Garden.
Trump said there will be “base” tariffs of 10 per cent, with imports from some countries subject to higher levies. He showed off a large chart displaying rates for different countries, but the chart did not include Canada.
In a fact sheet, the White House said that previous orders concerning Canada and Mexico “are unaffected by this order” and remain in effect, which include an exemption from goods compliant with the United States–Mexico–Canada Agreement (USMCA) on trade.
“This means USMCA-compliant goods will continue to see a 0 per cent tariff, non-USMCA compliant goods will see a 25 per cent tariff, and non-USMCA compliant energy and potash will see a 10 per cent tariff,” it says.
Carney noted that Trump’s measures will “fundamentally change the international trading system,” and while the U.S. has “preserved a number of important elements of our relationship,” tariffs justified by the fentanyl crisis and levies on steel and aluminum remain in place.
There’s also a 25 per cent tariff on foreign automobiles that took effect at midnight. The president’s executive order specifies that vehicles covered under the USMCA will be taxed on the value of their “non-U.S. content.”
“The U.S. has signalled that there will be additional tariffs in so-called strategic sectors — pharmaceuticals, lumber and semiconductors,” Carney said.
“So we're in a situation where there is going to be an impact on the U.S. economy, which will build with time, in our judgment … but the series of measures will directly affect millions of Canadians.”
Carney said he will be meeting with the Canada-U.S. cabinet committee and host a First Ministers meeting Thursday morning, at which point he “will have more to say.”
Premier Doug Ford, who is the chair of the Council of the Federation, was cautiously optimistic after Trump’s announcement. He said it was “good news” that Canada wasn’t named among the list of countries facing reciprocal tariffs from the United States, but wouldn’t comment further as news can “change hour-by-hour, day-by day.”
Ford appeared to attribute the exclusion to communication with American people and companies.
“I think that’s a positive sign. But in saying that, let’s see what happens.”
— With files from Jessica Smith Cross
