Canadian officials have warned U.S. President Donald Trump that the imposition of further tariffs will harm the American economy and merit a firm response from Ottawa.
“We will put in place retaliatory measures if there are additional measures put against Canada tomorrow,” Canadian Prime Minister Mark Carney said at a rally in Winnipeg on Tuesday.
Newsweek has contacted the Office of the U.S. Trade Representative for comment.
Why It Matters
Canada’s relationship with the U.S. has grown increasingly fractious, in part because of Trump’s imposition of tariffs on the country and his repeated threats to transform it into the U.S.’s “51st state.”
Canada has been a major focus of the Trump administration’s aggressive overhaul of the U.S.’s free trade practices, subjecting it to country-specific tariffs alongside China and Mexico. As a neighbor and critical trading partner, Canada is also expected to be particularly affected by Trump’s duties on steel and aluminum and newly announced tariffs on automobile imports.
What To Know
Trump is set to speak at the White House Rose Garden at 4 p.m. Eastern time, where he is expected to announce new tariffs and outline the scope of his “reciprocal tariffs.” However, key details, including which countries will be affected and the rates placed on imports, remain unclear.
According to Politico, citing anonymous White House and administration sources, even Trump’s closest advisers are uncertain about which tariffs will be announced on April 2, which Trump has called “Liberation Day.”
Other outlets have reported that the president may unveil a universal 20 percent tariff on all imports to the U.S., though the White House has not confirmed these reports, stressing that full details will be disclosed on Wednesday afternoon.
Carney did not offer a direct answer when asked if he expected Trump to follow through with a global flat tariff. Instead, he said he had spoken with Trump and that they had agreed to engage in “comprehensive negotiations” on the future of U.S.-Canada trade following the Liberation Day announcements.
The prime minister added that his Cabinet had remained “in close contact” with U.S. Commerce Secretary Howard Lutnick and U.S. Secretary of State Marco Rubio and would be “looking with interest at what is announced tomorrow.”
Carney held a meeting with Mexican President Claudia Sheinbaum on Tuesday, after which his office released a statement warning of “challenging times ahead.” He also stressed the importance of increased trade between the two countries and “of safeguarding North American competitiveness while respecting the sovereignty of each nation.”
Speaking with NBC News on Tuesday, Ontario Premier Doug Ford said the severity of Canada’s response would depend on what Trump announced in the Rose Garden.
Ford, who previously threatened to put a surcharge on electricity exports to the U.S., added that Americans would feel the effects of the tariffs announced on Liberation Day.
“I don’t call it Liberation Day for Americans. I call it Termination Day because there are people going to be laid off. Assembly lines will shut down,” Ford said. “You can’t just cut off your largest customer in the world, and that’s Canada.”
What People Are Saying
Canadian Prime Minister Mark Carney said on Tuesday that Canada had “held back” in the retaliatory measures it had taken in response to tariffs from the U.S.
He said, “There are measures that we can take that, at a minimum, level the playing field with the United States, and again, it depends on the broader measures they take tomorrow.”
Pierre Poilievre, the leader of Canada’s Conservative Party, called Trump’s tariffs on auto imports “unjustified and unprovoked” and warned that they would “damage his workers and his economy, just as they will damage ours.”
Canadian business owner Kevin O’Leary, who ran for the Conservative Party leadership in 2017, told CNN that forecasts predicting a tariff-induced recession were “based on the idea that tariffs are going to be permanent and in perpetuity.”
“If they’re going to be reciprocal, in the end that actually promotes free trade,” O’Leary added. “It’s stupid to have the same equal tariff on both sides of any country. It’s just dumb, and everybody knows that.”
Canadian Minister of Foreign Affairs Mélanie Joly wrote on X in February: “Canadians have been nothing but the strongest allies and the best neighbours to the United States. These tariffs are completely unjustifiable, and Canadians are united in the face of this economic threat. Canada will not back down.”
Tjorven Bellmann, the German ambassador to Canada, said Trump’s threats of large-scale tariffs on products from Canada and the EU had prompted the two blocs to prioritize closer economic relations.
“[We] have to show to the U.S. that this is a battle that nobody can win. Everybody will lose at the end of it,” Bellmann said. “And it will be U.S. citizens and U.S. businesses who will lose as well.”
Susan Rice, a former U.S. ambassador to the U.N. and former national security adviser, told CBC News that Trump’s tariffs were “self-defeating.”
“The consequences will be enormous for the American consumer, who will pay a great deal more for cars and many other things,” Rice said. “Obviously, also for Canadian consumers, and [the] economies of both countries.”
Donald Abelson, a professor of political science at McMaster University in Ontario, told Newsweek that Canadians were “largely unified in their opposition to U.S. tariffs” and would respond fiercely to Trump’s “bully-like behavior,” which includes his threats of incorporating Canada as a 51st state.
“I also predict that Trump’s behavior will encourage Canada to move closer [to] its European and Asian allies in an effort to reduce its dependence [on] the U.S.,” he added.
Daire Burke, the head of the financial advisory firm Swoop Funding North America, told Newsweek: “Canada’s economy, being highly trade-dependent, is expected to suffer due to the U.S. tariffs. Economic growth may be hampered, and businesses could face increased prices for imports. The Canadian economy could enter a recession within six months if the tariffs are maintained.”
What Happens Next
In addition to the tariffs being announced on Wednesday afternoon, which White House press secretary Karoline Leavitt said would take effect “immediately,” the administration is planning to impose a 25 percent blanket tariff on all imports from nations that purchase Venezuelan oil or gas on or after April 2.
The Canadian federal election is scheduled for April 28. Carney’s Liberal Party holds a modest lead over the Conservatives, according to the latest polling from CBC News.
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