Canadian Prime Minister Mark Carney on Monday downplayed US President Donald Trump’s latest tariff threat against Canada, saying the comments should be viewed with an eye towards a coming trade deal review.
Asked about Trump’s threat to impose 100 per cent tariffs on Canadian imports should Ottawa finalise a new trade deal with China, Carney told reporters that the North American free trade deal is up for review this year and “the president is a strong negotiator”.
“I think some of these comments and positioning should be viewed in the broader context of that,” Carney said.
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Trump has so far adhered to most of the existing United States-Canada-Mexico Agreement (USMCA), which the president negotiated and praised during his first term.
Canada has been hit hard by Trump’s sectoral tariffs – especially in the car, steel and aluminium sectors – but more than 85 per cent of bilateral US-Canada trade has remained tariff-free through the continuing trade war.
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Substantial changes to the USMCA could upend the Canadian economy.
The USMCA review set for the first half of this year comes as Trump has escalated his rhetorical attacks on Carney.
