Carney says Canada evaluating 'all options' as US threatens 50 per cent tariffs
Ottawa responds to President Trump’s 30-day ultimatum with market volatility and provincial backlash while federal government seeks diplomatic resolution.
Canadian Prime Minister Mark Carney confirmed on Tuesday that the federal government is reviewing "all options" in response to US President Donald Trump’s announcement of plans to impose 50 per cent tariffs on a range of Canadian goods within 30 days. The declaration has triggered immediate economic turbulence and political friction, prompting Ottawa to seek a diplomatic off-ramp while preparing for potential trade disruptions.
Following the announcement, Carney stated that he and President Trump had agreed to intensify discussions in the coming weeks regarding a potential comprehensive deal. Despite the urgency of the situation, the Prime Minister did not indicate any plans to travel to Washington for negotiations, suggesting that immediate high-level travel is not part of the current strategy to resolve the impasse.
The tariff threat has already impacted financial markets, with the Canadian dollar weakening by 0.1 per cent to reach 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 organisation had previously shared worries with the federal government about the potential for further escalation.
Provincial leaders have reacted with strong condemnation, signalling a unified front against the proposed levies. Ontario Premier Doug Ford has urged a "dollar for dollar" retaliatory 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.
While the specific details of the "all options" being considered by the government have not been disclosed, the immediate focus remains on securing a comprehensive agreement through intensified dialogue. The outcome of these discussions remains uncertain, as the 30-day window for the implementation of the new tariffs continues to tick down.
