Canadian Prime Minister Mark Carney said on Thursday that Ottawa is weighing every available option for retaliation should negotiations not prevent a threatened U.S. tariff of 50 percent, scheduled to take effect by August 19.
Speaking to reporters in Charlottetown, Prince Edward Island, Carney said, "Everything's on the table if there's no agreement, depending on the outcome of the negotiations."
The prime minister noted that Canada had previously rolled back a number of counter-tariffs against the United States last September, underscoring that the current stance represents a reconsideration of those earlier concessions if a deal cannot be reached.
When asked whether the looming tariff threat should be seen as a potential catalyst to reach a final agreement or merely another tactical pressure move by the U.S. administration, Carney described it as both. He said, "We've seen a series of trade negotiations that the U.S. has undertaken and normally there's a deadline. Normally there's an outsized tariff associated with that deadline."
Carney also characterized recent interactions with officials from the U.S. administration as demonstrating a level of engagement that aligns with the seriousness of the countries' trade relationship. He said those exchanges this week reflected that seriousness, without offering further detail on the substance of the talks.
In summary, Ottawa is keeping retaliatory measures on the table while negotiations continue toward avoiding a significant tariff increase scheduled for August 19. The prime minister reiterated that past conciliatory steps - namely the removal of several counter-tariffs last September - remain reversible depending on how negotiations unfold.
The coming days are likely to determine whether talks will produce an agreement that blocks the threatened tariff, or whether Canada will move to implement retaliatory actions outlined in principle by the prime minister.