Donald Trump Photo: Nic Antaya / Getty images
Canada will not let the introduction of new US tariffs go unanswered, according to Mark Carney, the Liberal Party’s frontrunner for prime minister. In an interview with BBC Newsnight, he promised that the country would “not back down” in the face of Washington’s economic pressure.
“President Trump probably thinks that Canada will give in. But we will fight the aggressor and introduce dollar-for-dollar mirror tariffs,” said Carney, who previously headed the Bank of Canada and the Bank of England.
Trump confirmed that 25% duties on goods from Canada and Mexico, as well as 10% tariffs on Chinese imports, will come into effect on 1 February. He also threatened to impose economic sanctions on the EU if the bloc does not increase purchases of US energy.
Carney warned that such actions by Washington would “undermine its reputation in the world”, provoke an economic downturn, rising inflation and higher rates.
“This is the second time in the last decade that the United States has actually destroyed an agreement with its closest trading partner,” the politician added, recalling the changes to the North American Free Trade Agreement (NAFTA), which Trump replaced with the USMCA in 2020.
Whether the conflict between the two neighbours will escalate remains to be seen.
