- PM Mark Carney warns U.S.-Canada trade relations may suffer after Trump imposes 35% tariffs on Canadian exports.
- Over 85% of U.S.-Canada trade remains tariff-free under the USMCA, which Carney vows to defend.
- Canada shifts focus to internal markets and Mexico cooperation ahead of the 2025 USMCA review.
Prime Minister Mark Carney has responded firmly but cautiously to U.S. President Donald Trump‘s abrupt decision to raise tariffs on Canadian goods from 25% to 35%, citing “inaction” by Canada.
Rather than immediately engaging Trump, Carney stated, “We’ll speak when it makes sense,” signaling a deliberate and strategic pause. In the meantime, Canada is reinforcing its softwood lumber sector with a C$1.2 billion package aimed at strengthening domestic markets.
Ottawa’s Trade Patience: Carney Waits Out Trump Tariffs as Canada Eyes Broader Strategy
Trump’s latest tariff move, criticized for its inconsistency with USMCA terms, has not yet triggered reciprocal action from Canada. Instead, the Carney administration appears focused on preserving economic stability while seeking trusted trade alternatives. Canadian officials have reiterated their support for multilateral frameworks that protect long-standing regional supply chains.
The Prime Minister’s decision not to immediately engage in talks may reflect both political calculation and economic reality. With over 85% of Canadian exports to the U.S. still flowing tariff-free, Carney appears to be buying time while preparing a broader strategic response that avoids an unnecessary escalation.
Trump’s rationale—linking the tariff hike to Canada’s alleged lack of action on the fentanyl crisis—has raised eyebrows in diplomatic circles. Ottawa has not responded to this claim directly, but analysts suggest such accusations could complicate the tone of upcoming negotiations, especially with public health policy and trade being linked in this manner.
As Canada prepares for the USMCA review next year, its engagement with Mexico is becoming increasingly vital. Discussions between Canadian ministers and Mexican President Claudia Sheinbaum signal a shared interest in reinforcing the trilateral pact while avoiding one-on-one tensions with Washington. This emerging North American axis may be a critical hedge against U.S. unpredictability.
Canada is navigating rising trade tensions with caution and strategy. By delaying talks and reinforcing alliances, Carney’s government is choosing resilience over retaliation.
“In matters of style, swim with the current; in matters of principle, stand like a rock.” – Thomas Jefferson
