Carney and Trump agree to intensify trade talks as US imposes 50 per cent tariffs on Canadian goods
New levies on $20 billion of imports take effect in 30 days, prompting unified condemnation from Canadian provincial leaders and a weakening of the Canadian dollar.
Canadian Prime Minister Mark Carney and US President Donald Trump have agreed to intensify trade negotiations following the announcement of 50 per cent tariffs on a wide range of Canadian imports. Carney confirmed he spoke with the US president on Tuesday, stating that the immediate objective is to secure a comprehensive agreement. However, he warned that Canada would consider all options if the tariffs proceed, which were imposed in retaliation for what Washington described as discriminatory treatment of US-made cars, alcohol, and dairy goods.
The tariffs, set to take effect in 30 days, target nearly $20 billion of imports and were enacted under Section 338 of the US Tariff Act of 1930. This marks the first known usage of the law in nearly a century. The measures affect a broad spectrum of goods, including dairy products, swimming pools, furniture, fishing rods, seeds, clothing, wigs, wine, cement, and ice hockey gear. The US Trade Representative’s office confirmed the scope of the levies, which represent approximately 5.2 per cent of the $382 billion in goods the US imported from Canada in 2025.
Canadian provincial leaders have strongly condemned the move. Ontario Premier Doug Ford urged a “dollar for dollar” response, while British Columbia Premier David Eby stated there is “not a chance in hell” that US alcohol will return to shelves in his province. Several provinces, excluding Alberta and Saskatchewan, have maintained bans or severe restrictions on US alcohol sales since February 2025, reducing imports of US wine by more than 80 per cent. Saskatchewan Premier Scott Moe called for intensified talks, noting the relationship is “more important than any president or prime minister.”
The political fallout extends to the opposition, with the Conservative Party calling the tariffs an “unacceptable and unjustified attack on Canadian workers.” In the US, Vermont Senator Peter Welch described the measures as an “extreme escalation” of a “reckless and irresponsible trade war,” calling for their immediate withdrawal. Trump denied any link between the tariffs and recent wildfire smoke issues, insisting the trade measures are separate from environmental concerns.
Economic indicators have already reacted to the announcement. The Canadian dollar weakened 0.1 per cent to a one-week low of 1.4090 per US dollar. The Canadian Chamber of Commerce, led by president and CEO Candace Laing, expressed concern that the trade relationship would become “bumpier,” noting that the group had previously shared worries with the federal government about further escalation. Carney indicated that Canadian provinces should only lift their bans on US alcohol as part of a broader US trade deal, maintaining the pressure on Washington as negotiations begin.
