Trump threatens tariffs of 50%. Canada is preparing a response

Canada may respond to the 50 percent tariffs announced by the United States if ongoing negotiations do not result in an agreement. Prime Minister Mark Carney said all options were being considered, but did not reveal what retaliatory action his government might take.

The new US tariffs are scheduled to come into force on August 19. Until then, the authorities in Ottawa intend to continue talks with the Donald Trump administration and try to reach a broad agreement covering all sectors affected by the trade dispute.

Canada is not disclosing details of the retaliation

After meeting with the heads of Canadian provincial and territorial governments in Charlottetown, Mark Carney stressed that revealing details of a possible response would be counterproductive at this time. Negotiations are still ongoing, which is why the government does not want to present its cards in advance.

Donald Trump, when announcing new tariffs, referred to the provisions of the American Tariff Act of 1930. They allow the United States to unilaterally impose tariffs of up to 50%. in response to trade barriers deemed unreasonable.

US accuses Canada of discrimination

The American administration claims that Canada discriminates against the automotive, dairy and alcohol industries from the United States. One of the main points of contention is the suspension of imports of American spirits, including wine, by most Canadian provinces and territories.

This decision was a response to previous US tariffs covering some goods from Canada. Currently, the dispute may enter the next phase if new rules for trade cooperation are not agreed.

The provinces talk about oil and potash

Some Canadian provincial premiers openly indicate possible retaliatory measures. Ontario Premier Doug Ford has suggested limiting the export of potash, used to produce fertilizers, and crude oil to the United States.

However, the idea of ​​suspending oil supplies is opposed by the Prime Minister of Alberta, Danielle Smith. This shows that although the provincial authorities declare a common front against the US, not all possible actions enjoy equal support.

Canadian regions form a united front

Following the Federation Council meeting, provincial and territorial premiers stressed the importance of a unified approach to the trade conflict. They announced further cooperation in defense of Canadian workers, farmers, entrepreneurs and families.

The Canadian authorities are counting primarily on an agreement negotiated before August 19. At the same time, they are preparing for a scenario in which the US actually introduces tariffs of 50% and Ottawa decides to respond with its own restrictions.