Canada’s Carney refuses to take Trump’s ‘bait’, confronting US in trade war

Prime Minister Mark Carney of Canada defied US President Donald Trump's attempts to provoke a trade war, in a move that could carry economic risks. Carney, speaking on Friday, rejected an "unfair" trade deal and pledged to set Canada's own course to strengthen the nation. Just before a deadline set by Trump, Carney halted talks on a bilateral trade agreement, leading to the imposition of 50% US tariffs on $20 billion worth of Canadian goods, including hockey sticks and cement, effective Saturday.

In retaliation, Carney announced duties on US steel and dairy products, set to take effect on September 8. Carney, a former head of central banks in Canada and Britain, garnered support across Canada's political spectrum, with opposition leader Pierre Poilievre urging citizens to defend their country against unfair attacks on jobs and businesses.

The Globe and Mail editorialized that Carney had heeded the Canadian public's call rather than the bait from Trump. A recent poll showed 56% of Canadians wanted their government to take a hard line in trade negotiations. Canada, as the US's biggest trading partner, exports to them 70% of its total goods. The tariffs have already affected major sectors, such as steel and auto industries, with analysts at the Royal Bank of Canada warning of the economic cost.

While Quebec and Ontario provinces are expected to bear the brunt, Carney has not resorted to energy diplomacy, despite calls from some. The unpredictability of the Trump administration poses a risk to business confidence for all trade-exposed industries in Canada, according to an economist from the University of Calgary.