By Thomas Seal
(Bloomberg) — Prime Minister Mark Carney stated Canada will take a look at whether or not to take away some counter-tariffs in opposition to the U.S., regardless of successful an election during which he pledged to struggle again in opposition to President Donald Trump’s commerce battle.
Carney stated retaliatory tariffs needs to be designed to maximise the affect on the U.S. however reduce the ache for Canadian companies. When the U.S. modifications its tariff fee, “we don’t routinely regulate. We take a look at what we will do for our trade that’s handiest,” he stated in West Kelowna, British Columbia.
“In some circumstances, that will likely be to take away tariffs. We’ve got eliminated some tariffs over time in order that, for instance, the auto trade can perform extra successfully. And we’ll take a look at alternatives to take action.”
The feedback underscore a politically awkward place for Carney as he seeks to attenuate financial injury whereas additionally standing agency in opposition to Trump. The U.S. president has imposed a broadside of tariffs and infuriated many Canadians by saying their nation needs to be a 51st U.S. state. Polls present there’s robust urge for food among the many Canadian public for a hardball method to the commerce talks.
However some economists, companies and provincial premiers have warned in opposition to escalation with the U.S. And Carney has tried to melt the blow of Canada’s counter-tariffs, which apply to tens of billions of {dollars} price of U.S. merchandise, by creating exemptions.
To assist the auto sector, in April Carney provided tariff reduction to carmakers — in the event that they make investments and preserve manufacturing in Canada. In June, he stated the federal government would regulate its present counter-tariffs on metal and aluminum primarily based on discussions with the US. However the US has since raised some tariffs, however Canada has not retaliated.
Carney narrowly gained an election in April touting slogans like “Canada Sturdy” and “Elbows Up,” the latter phrase meant to evoke averting belligerent opponents within the nationwide sport of hockey.
Carney’s important political opponent, Conservative Social gathering Chief Pierre Poilievre, mocked the phrase by saying the prime minister’s tenure was extra a case of “elbows down and tariffs up.”
‘They’re an Irritant’
If Canadians anticipated different international locations to comply with swimsuit in retaliation, the months since have proved disappointing. Though the European Union and Mexico have threatened measures in opposition to the US, they’ve held off, leaving Canada and China as the one international locations to punch again with their very own sizable counter-tariffs.
The White Home cited Canada’s retaliation as a part of the justification for rising headline tariffs to 35% from 25% on some Canadian merchandise final week. Nearly all of items, nevertheless, stay exempt, coated by the US-Mexico-Canada commerce deal Trump signed throughout his first time period in workplace.
Pete Hoekstra, the U.S. ambassador to Canada, informed the Canadian Broadcasting Corp. that Trump’s coverage is “tariffs for each single nation on this planet.” Canada would seemingly must take away its counter-tariffs as a part of any commerce truce, the diplomat stated. “They’re an irritant proper now.”
Final month, British Columbia Premier David Eby informed Bloomberg he didn’t suppose extra counter-tariffs would change Trump’s thoughts, however may nonetheless inflict hurt on his province. That’s as a result of it’s troublesome for BC companies to switch American metal and aluminum by paying to ship the heavy commodities from Canadian smelters within the east, 1000’s of miles away by rail.
Nonetheless, Canadian voters nonetheless favor a “hardball” response, refusing concessions, based on polling by Angus Reid launched Friday.
–With help from Melissa Shin.
(Updates with feedback from Conservative Social gathering chief and US ambassador, starting within the eighth paragraph.)
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Final modified: August 6, 2025
