Canada vows response as Trump announces 50% tariffs on Canadian goods

Montreal: Canadian Prime Minister Mark Carney on Tuesday said Canada is considering all possible responses after US President Donald Trump announced plans to introduce new 50 per cent tariffs on a wide range of Canadian goods within 30 days.

Carney said he and Trump agreed to intensify discussions in the coming weeks to explore a possible trade agreement, but he did not indicate any immediate plans to visit Washington for negotiations.

The proposed tariffs would affect several Canadian exports, including wine, cement, hockey equipment, dairy products, furniture, clothing and other goods. However, certain products such as energy, potash and some goods already covered under sector-specific tariffs would be excluded.

The tariffs would also impact products traded under the United States-Mexico-Canada Agreement (USMCA), which is expected to face fresh negotiations after Washington indicated it would not continue the agreement in its current form.

Carney said Canada's priority remains reaching a comprehensive agreement with the United States while protecting the interests of Canadian businesses and consumers.

The Trump administration said the tariffs were in response to what it described as unfair treatment of American products, including cars, alcohol and dairy goods. The move marks a fresh escalation in the ongoing trade dispute between the two neighbouring countries.

Canada has argued that previous US tariffs violated the terms of the USMCA and said it is prepared to continue negotiations to resolve outstanding issues.

The new tariffs are expected to come into effect on August 19 and could impact billions of dollars worth of Canadian exports to the United States.