Prime Minister Mark Carney said Canada was under economic attack Saturday after trade negotiations collapsed, new U.S. tariffs took effect and he suggested divisions inside U.S. President Donald Trump\u2019s administration contributed to the breakdown.<\/p>\n
Speaking Saturday morning, Aug. 22, Carney was asked why his tone toward Washington had changed and whether Canada was entering a trade war.<\/p>\n
\u201cBecause we were attacked,\u201d Carney said. \u201cLike, you\u2019re at war when you get attacked. We got attacked.\u201d<\/p>\n
The United States imposed 50 per cent tariffs at 12:01 a.m. Saturday on selected Canadian goods worth about $28 billion.<\/p>\n
The duties had initially been scheduled to take effect Aug. 19 before Trump issued a three-day postponement<\/a> as negotiations progressed.<\/p>\n Carney said Canada would retaliate against American imports starting Sept. 8, matching the value of goods targeted by the U.S. tariffs.<\/p>\n He identified steel, dairy, appliances, agricultural equipment, pulp and paper and electronics as potential targets. Ottawa has yet to release the complete product list or the tariff rates that would apply.<\/p>\n \u201cWe\u2019ve got the reserves. We\u2019ve got the resilience. We\u2019ve got the plan. We\u2019ve got the focus,\u201d Carney said. \u201cWe will respond.\u201d<\/p>\n Deal appeared close before negotiations broke down<\/p>\n Both governments had suggested earlier in the week that an agreement was within reach.<\/p>\n Trump said Tuesday, Aug. 18, that the countries had reached a deal, subject to finalizing the documents. Carney said negotiators had made substantial progress but that additional work was needed.<\/p>\n By Friday night, Aug. 21, Carney had suspended negotiations and instructed Canada\u2019s team to return to Ottawa.<\/p>\n He said American officials introduced new demands during the final hours that threatened Canadian industries and the country\u2019s ability to make independent decisions.<\/p>\n \u201cIn short, they asked too much, and they offered too little,\u201d Carney said.<\/p>\n U.S. Trade Representative Jamieson Greer disputed that account, blaming Canada for the breakdown and saying the two countries had no additional negotiations planned.<\/p>\n \u201cWe\u2019re moving forward with measures that respond to Canadian retaliation,\u201d Greer told Fox News on Saturday.<\/p>\n Carney also suggested the American negotiating team was not working toward a common objective.<\/p>\n Asked whether U.S. Commerce Secretary Howard Lutnick\u2019s involvement had complicated the final negotiations, Carney declined to blame him directly.<\/p>\n He described Canada\u2019s team as unified, with cabinet ministers, senior officials and diplomats working together.<\/p>\n \u201cYou cannot say that about the United States administration,\u201d Carney said.<\/p>\n He suggested the final negotiations may have exposed disagreements within the American administration, while stressing that responsibility ultimately rested with Trump.<\/p>\n \u201cUltimately, there\u2019s a decision-maker at the top,\u201d Carney said.<\/p>\n Trucks, trade agreements and cultural protections<\/p>\n Carney said one of Washington\u2019s late demands would have excluded Canadian-made medium- and heavy-duty trucks from favourable tariff treatment.<\/p>\n He identified Ford trucks assembled in Oakville, Ont., and General Motors pickups produced in Oshawa, Ont., as examples of vehicles that could be affected.<\/p>\n Ford\u2019s official plant directory<\/a> lists the F-350 and F-450 among the Super Duty models produced in Oakville. General Motors<\/a> manufactures heavy-duty and light-duty Chevrolet Silverado pickups in Oshawa.<\/p>\n Carney said the proposed restrictions would have made Canadian truck production less competitive.<\/p>\n He also said American negotiators sought provisions restricting Canada\u2019s ability to reach trade agreements with other countries.<\/p>\n \u201cIt\u2019s a power play,\u201d Carney said.<\/p>\n He described those demands as a question of Canadian sovereignty and said Ottawa would make its own decisions about international trade.<\/p>\n Carney also accused U.S. negotiators of pressing for changes affecting Canadian cultural protections and the French language.<\/p>\n He said those issues had never been open for negotiation.<\/p>\n Carney said Canada had offered to remove retaliatory tariffs on steel, aluminum and vehicles if the United States significantly reduced its own duties.<\/p>\n Ottawa was also prepared to ask provinces to return American alcohol to store shelves and consider administrative changes involving dairy access while preserving supply management, according to the Prime Minister\u2019s Office<\/a>.<\/p>\n \u201cWe cannot accept what they\u2019ve offered, and we will not give what they\u2019ve asked,\u201d Carney said.<\/p>\n Business support expected next week<\/p>\n Carney said many companies affected by the U.S. tariffs were small- and medium-sized businesses, particularly in Ontario, Quebec and B.C.<\/p>\n \u201cWe\u2019re going to hit back,\u201d he said. \u201cWe will do whatever it takes to support these businesses.\u201d<\/p>\n Carney said details of additional assistance would be announced early in the week of Aug. 24.<\/p>\n He identified regional development agencies and the Business Development Bank of Canada as possible channels for delivering support, but did not announce specific programs or funding amounts.<\/p>\n Carney said assistance would remain available for as long as necessary.<\/p>\n \u201cIn other words, beyond the life of this U.S. administration,\u201d he said.<\/p>\n The government previously identified nearly $25 billion in support for workers and businesses affected by American tariffs over the past 18 months, according to a statement from the Prime Minister\u2019s Office<\/a>.<\/p>\n Carney acknowledged that Canadian countermeasures would increase some costs and reduce consumer choice.<\/p>\n He said the government would target industries disadvantaged by U.S. trade actions while working to limit the impact on Canadians.<\/p>\n Critical minerals and export markets<\/p>\n Carney said the dispute could reduce opportunities for Canada and the United States to co-operate on critical minerals.<\/p>\n Asked whether American officials had demanded exclusive access to Canadian resources, Carney did not confirm that such a demand had been made.<\/p>\n He said Canada would never agree to exclusive American access and suggested the confrontation could encourage stronger partnerships with other countries.<\/p>\n Carney also pointed to potential overseas oil and liquefied natural gas exports as ways to reduce Canada\u2019s reliance on the American market.<\/p>\n U.S. Democrats criticize Trump\u2019s tariffs<\/p>\n Several Democratic politicians criticized Trump\u2019s decision to impose new tariffs on one of the United States\u2019 closest allies.<\/p>\n California Governor Gavin Newsom questioned the direction of American trade policy in a blunt social media post.<\/p>\n \u201cOur closest ally. Our critical trading partner. And Trump is hitting Canada with 50% tariffs. What the actual f*** are we doing?\u201d Newsom wrote.<\/p>\n https:\/\/x.com\/GavinNewsom\/status\/2091201588320985174<\/a><\/p>\n Michigan Governor Gretchen Whitmer said the tariffs would raise costs for families and businesses in her state.<\/p>\n \u201cThese tariffs act as a tax hike on Michigan families and businesses by raising prices at the grocery store and the gas pump,\u201d she wrote.<\/p>\n https:\/\/x.com\/GovWhitmer\/status\/2091198433595998498<\/a><\/p>\n Whitmer said automakers could be forced to lay off workers or pass additional costs on to customers.<\/p>\n \u201cThis must end,\u201d she wrote.<\/p>\n