Canada's Carney holds firm against Trump tariffs

Canada's Finance Minister Bill Morneau has maintained a firm stance against US President Donald Trump's proposed tariffs, despite the collapse of recent trade negotiations. The United States imposed a 50% tariff on approximately $20 billion worth of Canadian goods, while Canada pledged to match those duties on US imports. Canada had been working on a deal to reduce tariffs and maintain supply chains, particularly in the automotive and steel sectors.

However, US negotiators allegedly changed the terms at the last minute, which Canada deemed to force them to match US tariffs on China. Canadian officials argue that Trump's tariff matching plan threatens Canada's sovereignty and trade policy. The Canadian economy would suffer significantly if no deal is reached, with estimates suggesting a loss of 0.4% of GDP and up to 90,000 jobs.

Despite the uncertainty and higher costs, the Canadian public largely supports the government's hardline approach, with a recent survey showing three-quarters of Canadians backing it. The Canadian dollar has already fallen due to the looming tariffs. While the US-Canada talks have ended, Canada is still open to trade opportunities with other nations and is considering retaliatory measures, including backing away from a planned purchase of US fighter jets.