Canada pledges dollar-for-dollar tariff response to US measures

Prime Minister Mark Carney said Canada would implement reciprocal tariffs on American products should the United States proceed with its proposed trade measures. The pledge comes after Washington introduced eleventh-hour modifications to previously negotiated terms, which Carney characterised as economically unviable.

The Canadian leader criticised the timing and substance of the changes, arguing they undermine the principles of fair dealing that should govern trade agreements between neighbouring countries. His remarks signal Ottawa's determination to protect domestic interests while highlighting tensions in ongoing negotiations between the two trading partners.

The tit-for-tat approach reflects broader concerns about the reliability of trade commitments in an increasingly uncertain economic environment. Markets have watched closely as Canada and the United States navigate their commercial relationship, with implications extending across North America's integrated supply chains.

Carney's statement suggests little room for compromise on what Canada considers foundational trade principles. The government has indicated it will not accept terms it deems unfavourable, setting the stage for potential escalation if the US moves forward with its proposed tariffs.