Carney faces ticking clock on Canadian support for tough tactics with Trump
The prime minister is one of the few global leaders to retaliate against U.S. tariffs, despite Canada's dependence on U.S. buyers for about 70% of its exports.
OTTAWA – Prime Minister Mark Carney's support among Canadians remains strong following his decision to terminate trade negotiations with the United States. However, the Canadian leader's ability to push back against U.S. President Donald Trump may fade as the repercussions of the trade conflict become apparent. Carney's negotiating leverage could also diminish if Republicans maintain control of Congress following the November midterm elections in the U.S., potentially strengthening American protectionism under Trump's administration.
It's noteworthy that Carney is among the select few world leaders who have retaliated against U.S. tariffs, despite Canada's significant reliance on U.S. buyers, accounting for roughly 70% of its total exports. On Tuesday, the Canadian government announced a retaliatory measure, imposing dollar-for-dollar counter-tariffs on $20 billion worth of U.S. goods, along with a C$7.5 billion ($5.41 billion) economic support package.
"Carney's bargaining power will begin to wane if this escalating trade war manifests in tangible increases in unemployment, factory closures, and reduced income," stated Julian Karaguesian, a former adviser at Canada's Finance Ministry and an economics professor at McGill University. "Canada cannot engage in an economic war of attrition with the U.S."
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