Carney touts Canada ‘pivot’ away from US as Trump levels new threat
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Canada’s Prime Minister Mark Carney said reducing economic ties with the United States would come at a cost but the benefits were clear.
PHOTO: REUTERS
- Canada has imposed retaliatory tariffs worth C$27.6 billion on US imports, aiming to protect its workers and industries amid escalating trade tensions with the US.
- US President Trump has threatened further sanctions, including restricting Canadian companies from US government contracts and targeting Bombardier Aviation.
- Canada plans to support affected businesses and workers with a C$7.5 billion aid package while seeking to reduce economic dependence on the US despite challenges.
AI generated
MONTREAL - Canadian Prime Minister Mark Carney said on Sept 8 that reducing economic ties with the United States would come at a cost but the benefits were clear, as President Donald Trump threatened new penalties targeting Canada.
Canada’s retaliatory tariffs came into effect earlier on Sept 8, applying to C$27.6 billion (S$25.28 billion) in US imports, covering steel and aluminium products as well as dairy goods such as cheese.
With the trade war between the North American neighbours heating up, Carney said Canada has “everything we need to pivot and prosper.”
“That pivot will come at a cost. There’s always a cost to action. But it doesn’t come close to the cost of standing still.”
Ottawa’s pushback comes after President Donald Trump imposed tariffs on a similar value of Canadian products over what Washington deemed “discriminatory treatment” of US alcohol, automobile, and dairy industries.
Responding to the latest Canadian levies, Trump pledged to restrict Canadian companies from securing US government contracts.
In a social media post, Trump said he was directing officials “to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules,” referring to a General Services Administration programme for long-term contracts.
Contracts through such schedules account for more than US$50 billion (S$63.24 billion) a year, Trump added.
On Sept 7, Trump threatened to try to block sales of Canada’s Bombardier Aviation unless the Quebec-based plane maker moves manufacturing to the United States.
In response, the aerospace company pointed to its creation of tens of thousands of jobs across the United States, with direct employment in more than 20 states, including Kansas, Texas, Arizona, and California.
The two Republican senators representing Kansas said they had conveyed their concerns to the White House.
“I’m going to fight to keep Bombardier’s more than 1,200 Kansas jobs. I’ve already taken that concern inside the Oval Office,” Senator Roger Marshall posted on X, with similar comments posted by Senator Jerry Moran.
US tariffs pose a modestly negative risk to Canada’s overall economy, but analysts note that they have a sharper impact on central Canada’s manufacturing sector.
Trade lawyer Ryan Majerus said Trump’s latest move restricting Canadian access to US government contracts “definitely has teeth to it” and could widen the scope of affected goods beyond those hit by tariffs.
‘Lake America’
“I don’t believe in escalating the conflict. That’s not constructive,” Carney said in his video statement on Sept 7. “But our tariffs are necessary to protect our workers, protect our companies, and protect our communities.
“This is about who we are as Canadians.”
Negotiations between the two sides broke down on Aug 21 after days of meetings in Washington.
At the time, Carney said US negotiators had introduced restrictions on Canadian trade deals with other countries at the eleventh hour.
US officials also made unacceptable “threats” to the French language and “Quebec culture,” he added, referring to the French-speaking province in eastern Canada.
Ottawa and Washington have not resumed talks since, and Trump has continued his attacks.
On Sept 6, Trump posted an illustration of himself towering over Carney as they played ice hockey, with Trump saying, “Get up, governor,” a reference to his determination to turn Canada into another US state.
Trump also signed an order in August to rename Lake Ontario, on the border with Canada, as “Lake America,” sparking fury in Canada amid a broader wave of patriotism triggered by the US president’s hostility.
Although Carney is backed by Canadian public opinion, his country remains reliant on its neighbour.
Nearly 60 per cent of Canada’s imports come from the United States, and about 70 per cent of its exports go to the US market.
To help businesses and workers, Canada’s government has unveiled an aid package worth C$7.5 billion. AFP
