Carney: Canada to Keep Tariffs Until US Commits to Free Trade

Canada will keep its trade retaliation in place until the U.S. lifts its own tariffs and commits to free trade, said Mark Carney, who will succeed Justin Trudeau as Canada’s prime minister within days.

“My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade,” Carney said in a statement.

Carney’s comment comes after U.S. President Donald Trump pledged to increase tariffs on Canadian steel and aluminum to 50% to retaliate against a move by Ontario to add a 25% surcharge to electricity exports to the U.S. However, Trump then said he may back down on doubling the tariffs on steel and aluminum once Ontario Premier Doug Ford said he would suspend the surcharge after Commerce Secretary Howard Lutnick agreed to meet to discuss renewal of the North American trade pact. Ontario is Canada’s most populous and exports electricity to Minnesota, New York and Michigan.

Canada also has 25% counter-tariffs in place on C$30 billion ($20.7 billion) worth of U.S. goods imported to the country, a move made last week after Trump imposed economywide tariffs on Canadian imports.

Trump later exempted Canadian goods covered under the North American trade agreement, but Canada did not remove its retaliation. Instead, Trudeau only promised to delay a second round of counter-tariffs that would hit a further C$125 billion in U.S. goods.

“President Trump’s latest tariffs are an attack on Canadian workers, families and businesses,” Carney said in the statement. “My government will ensure our response has maximum impact in the U.S. and minimal impact here in Canada, while supporting the workers impacted.”

Carney is expected to be sworn in as Canada’s prime minister by the end of the week. On March 9 he was elected the new leader of the Liberal Party with a dominant 86% of the vote among party members.