Canadian Prime Minister Mark Carney says he spoke with U.S. President Donald Trump on Tuesday morning and the two leaders have “agreed to intensify negotiations in the coming weeks” amid a renewed tariff escalation.
On Monday, President Trump signed a series of executive orders that would slap a 50 per cent tariff on a wide range of Canadian goods in 30 days.
The new tariffs would not be exempt under CUSMA, Trump’s administration said.
“President Trump is taking action to hold Canada accountable for its continued discrimination against and unreasonable and unequal treatment of U.S. commerce that has burdened and disadvantaged hardworking Americans,” a fact sheet from the White House said, referring in large part to provincial bans on U.S. liquor.
Canada’s supply managed dairy system and quotas on certain U.S. vehicles, are also factors.
All provinces have currently banned the sale of U.S. alcohol, with the exceptions of Alberta and Saskatchewan.
When asked on Tuesday if Trump’s latest threats could potentially result in U.S. booze being stocked on shelves again, Carney said it wasn’t his call alone to make.
“The provinces individually took those decisions in response to a series of tariffs that were put in place, and also threats to our sovereignty. Those measures have been supported by provincial citizens … the decision to change that, first and foremost, will be taken by the provinces themselves, each individually, and should only be taken, in my judgement, as part of an overall agreement and that’s what we will work to accomplish,” he said.
When asked if Canada would potentially retaliate with new tariffs of its own if Trump’s 50 per cent quotas come into effect, Carney kept the door open to a plethora of possibilities.
“We will look at all options in terms of how we would respond if they do come into effect,” he said.
“This is part of a negotiation, so the first objective is to get a comprehensive agreement that benefits obviously both countries, that is consistent with CUSMA.”
“We will do whatever it takes and keep all options (open).”
Trump’s latest round of threatened tariffs fall under Section 338 of the Tariff Act of 1930.
The White House said Section 338 empowers the president to impose tariffs when a country puts U.S. exporters at a disadvantage relative to exporters in other countries.
With files from The Canadian Press
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