21/07/26 | 11:35 am | Mark Carney | Trump tariffs

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Carney defends free trade after Trump imposes 50% tariff on select Canadian goods

Canadian Prime Minister Mark Carney on Tuesday said Canada would continue to support its workers, businesses and families after US President Donald Trump imposed a fresh round of 50 per cent tariffs on select Canadian goods, escalating trade tensions between the two neighbours.

In a statement posted on X, Carney said the latest US tariffs on Canadian dairy products, alcoholic beverages and motor vehicles were part of a series of unilateral trade actions that began with measures imposed in violation of the Canada-United States-Mexico Agreement (CUSMA).

“These include tariffs on the Canadian auto sector, in violation of CUSMA. Canada, as is its right, has merely matched those measures,” Carney said.

He said Canada had taken steps to defend its economy and sovereignty, with provinces and territories acting together to support workers, farmers, businesses and families.

Carney added that Ottawa had put forward “detailed and comprehensive” proposals to resolve the dispute and modernise CUSMA, saying Canada was prepared to intensify negotiations with the United States in the coming weeks.

“Canada believes in the benefits of free and fair trade,” he said, noting that his government had signed more than 20 new economic and security partnerships. He argued that the trade dispute had increased costs for families, particularly in the United States, and reiterated Canada’s willingness to engage with Washington to resolve outstanding issues.

“In all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families,” Carney said.

His remarks came after the White House announced an additional 50 per cent tariff on certain Canadian imports, citing what it described as “discriminatory treatment” of American products in the motor vehicle, dairy and alcoholic beverage sectors. The new tariffs are scheduled to take effect 30 days after President Trump signs the proclamations.

The latest measures mark another escalation in trade friction between the two countries despite the existence of CUSMA, the trilateral free trade agreement involving Canada, the United States and Mexico.

(ANI)

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