Carney says responding to Trump’s tariffs ‘pressure tactic’ counterproductive at this stage

Prime Minister Mark Carney says it would be counterproductive to respond to U.S. President Donald Trump’s new 50 per cent tariff threat, before those tariffs actually take effect.

Carney called the threat a “pressure tactic,” but also says it is an opportunity to negotiate.

He met with Canada’s premiers Thursday to discuss a united response to Trump.

There will be no counter tariffs yet.

“We don’t need to respond in advance,” said Carney. “In fact, I think it would be counterproductive at this stage to respond in advance.”

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Carney says Trump’s threat is both a pressure tactic, and an opportunity to negotiate — something he says Canada has seen from this administration before.

“…and normally there’s a deadline,” said Carney. “Normally there’s an outsized tariff associated with that deadline.”

Instead of counter tariffs, Carney said his negotiating team, led by Canada-U.S. Trade Minister Domenic LeBlanc and diplomat Janice Charette are intensifying talks and covering a broad range of trade issues with counterparts in Washington.

But if a deal isn’t reached by August 19, the day Trump’s new tariffs take effect, he’s not ruling out retaliation in some form.

Carney said he and the premiers discussed a range of retaliatory options.

“Everything’s on the table,” said Carney. “If there’s no agreement, depending on the outcome of the negotiations, yes.”

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Ontario Premier Doug Ford was eager to retaliate Wednesday, but Carney says Canada’s first ministers are now united.

Ford even jumped in to defend Carney’s handling of the Gordie Howe Bridge deal, amid questions about the prime minister’s revenue splitting arrangement with the Americans.

“The prime minister did an excellent job getting this deal done,” said Ford.

Carney said he and the premiers all agree to focus on building the Canadian economy.

Including a new federal investment to connect the electrical grids of Prince Edward Island and New Brunswick, part of a broader plan to connect provincial electrical grids.

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“This is perhaps unprecedented, this type of regional collaboration on energy issues,” said Prince Edward Island Premier Rob Lantz.

The prime minister says all the first ministers also agreed to maintain a united negotiation strategy with Washington.

“And part of that unity is recognizing that there isn’t a series of little trade issues, they are broad trade issues — all of them have to be part of a comprehensive agreement,” said Carney.

When asked about Trump’s trade czar’s comments made on Wednesday, that the U.S. is pursuing interim deals with Canada and Mexico while larger trade issues are discussed, Carney says any interim arrangement would be consistent with the Canada-U.S.-Mexico (CUSMA) trade deal, and he didn’t appear bothered by that approach.

U.S. trade representative Jamieson Greer says he wants until the end of the year to come up with options for the renewal of the CUSMA trade pact.

READ MORE: Canadian premiers tout unity in P.E.I. as new threat of U.S. tariffs looms