Carney warns of costs ahead as retaliatory tariffs take effect

Prime Minister Mark Carney is warning Canadians that the country’s shift away from the United States will carry costs, but says the alternative would be worse. In a national video address scheduled for release Tuesday, hours after retaliatory tariffs took effect, Carney said Canada will pursue new trade agreements to reduce its dependence on the United States.

Carney said the goal is for Canada to emerge stronger and more resilient so that no country can hold it hostage. He ended trade talks with the United States last month after the sides failed to reach a deal before President Donald Trump’s deadline for a new round of 50 per cent tariffs on nearly $28 billion of Canadian goods. Carney repeated his claim that the United States sought measures restricting Canada’s ability to trade with other countries and to promote and protect French language and culture.

Federal Conservatives are calling for details of the abandoned deal to be released and for Parliament to return before its scheduled Sept. 21 date. Poilievre said at a Sunday news conference in Regina that Canadians deserve to see the deal and understand the costs, decisions and plan ahead.

Carney said U.S. tariffs aimed at steel, aluminum, autos and lumber have primarily affected workers in Ontario, Quebec and B.C., while workers in Alberta and Saskatchewan have been less affected. Canada’s 15-to-50-per-cent reciprocal tariffs, launched Tuesday in response to the latest U.S. measures, apply only to products on the U.S. list and match the value of targeted exports, $27.8 billion. They include products such as honey, hockey sticks, milk and cheese.

Carney said he does not believe escalating the conflict is constructive, but called the tariffs necessary to protect workers, companies and communities. Canada, he said, cannot allow American goods into the country tariff-free while Canadian companies are charged to export to the United States.