Carney says he and Trump will intensify trade negotiations after US imposes 50% tariffs

Canadian Prime Minister Mark Carney and U.S. President Donald Trump have agreed to speed up trade negotiations following the announcement of new 50% tariffs on most Canadian goods. The levies, which impact a wide range of imports from the Great Lakes region to the Atlantic, are set to take effect within 30 days. This shift marks a notable escalation in regional trade tensions, affecting goods previously protected under the United States-Mexico-Canada Agreement.

Prime Minister Carney spoke in Ottawa to confirm the agreement to deepen discussions over the coming weeks. He stated that Canada intends to take necessary actions to support its workers, farmers, and domestic industries. The U.S. administration, meanwhile, cites disputes over automotive production, alcohol regulations, and agricultural access as primary drivers for the tariff action. Officials in Washington pointed to Canada's retaliatory measures regarding past trade disputes as a reason for this accountability measure.

Provincial leaders across Canada expressed significant concern regarding the economic impact of these tariffs. British Columbia Premier David Eby criticized the approach as an attempt to exert pressure on Canadian policies, specifically regarding the provincial ban on U.S. alcohol sales at government-run stores. Economists note that while the move creates uncertainty, the tariffs apply to roughly 5% of Canadian exports to the U.S., covering about $28 billion in annual trade volume.

While the current trade pact remains active, the lack of renewal has triggered a long-term negotiation process that could extend for years. As talks intensify, the focus remains on whether both sides can reach a resolution before the tariffs impose lasting damage on the integrated North American economy.