‘We’re going to hit back’ — Canada does what many other U.S. allies have avoided: risk economic pain rather than yield to tariff pressure
Carney said Washington introduced language in the final hours of negotiations that would have restricted Canada’s ability to make trade deals with other countries.
In a test of sovereignty, Canada has decided to stand up to economic coercion from the United States, despite potential economic pain. Prime Minister Mark Carney warned that middle powers must resist economic pressure by more powerful countries. When negotiations broke down late Friday, Carney accused the U.S. of demanding too much in exchange for tariff relief.
The U.S. then imposed 50% duties on about $20 billion worth of Canadian goods, and Carney announced dollar-for-dollar retaliation beginning September 8. This move is seen as a rare instance of a U.S. ally risking economic pain rather than yielding to tariff pressure. Historian Robert Bothwell notes that Canada is uniquely vulnerable to U.S. pressure, as it is more exposed than any other country to American misbehavior.
Carney argues that Canada's dependence on the U.S. market makes it difficult to resist such pressure, as nearly three-quarters of Canadian goods exports go to the United States. However, Canadians are showing strong support for Carney's stance, with many seeing it as popular and popular among most Canadians.
Written by urgent.news from Fortune's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
