Canada commits $11B to Quebec shipbuilding deal amid Trump’s trade war

'The goal of our trade negotiations with the United States has always been to get the best deal for Canadians, never a deal at any price, or on any time frame,' PM Carney said

Published Aug 24, 2026  •  Last updated 16 minutes ago  •  3 minute read

Canadian Prime Minister Mark Carney speaks about the trade dispute with the United States at the Davie Shipyard in Levis, Quebec, Canada on August 24, 2026. Photo by Andrej Ivanov /AFP/Getty Images

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OTTAWA — American reprisals are almost certainly a given.

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That’s what Prime Minister Mark Carney said about threats by U.S. President Donald Trump to retaliate against automotive-focused counter-tariffs imposed by Canada as the U.S.-led trade war against Canada continues.

“It’s not a surprise for us that the U.S. would take some form of reprisal to our response to their unjustified tariffs, which was on top of other unjustified tariffs,” Carney said in response to a question from reporters at a noon-hour news conference near Quebec City.

“But what message does that send to the workers in Michigan, Ohio, Kentucky and Alabama who rely on Canadian demand? We’re their largest customer for automobiles, more than the EU, Japan, Korea and many others combined, and the United Kingdom.”

Carney described the Canada-U.S. automaking partnership — which sees parts, components and even complete vehicles crossing borders several times as part of modern automaking practices — as the most successful in history.

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“It’s very revealing that this is where they’d go,” Carney said.

Carney confirmed Canada will indeed move ahead with matching, dollar-for-dollar counter-tariffs, set to begin on Sept. 8.

Trump unveiled plans to double tariffs on Canadian-assembled vehicles effective Jan. 1 2027 — including passenger cars, and light- to heavy-duty trucks — as well  a 50% levy on Canadian-made auto parts.

Carney in Quebec for shipbuilding announcement

Joined by Quebec Premier Christine Frechette, Carney was in Lévis, QC. on Monday — just across the St. Lawrence River from Quebec City — to announce a new $11 billion program to build six new icebreakers for the Canadian Coast Guard, a move the PMO described as the largest shipbuilding contract in Quebec history.

In partnership with Canadian shipbuilder Chantier Davie Canada Inc., the contract is touted to create 5,000 new jobs, contribute nearly $650 million annually to Canada’s GDP and involve a supply chain of nearly 1,500 Canadian suppliers.

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Construction on the new vessels is expected to begin by next fall, with the first ship delivered within five years, and the complete fleet in the water in a decade.

In 2023, the Quebec government awarded Chantier Davie $520 million to support the company’s modernization efforts at its Lévis shipyards.

Carney said nothing that’s happened over the past week is going to impact the deal, as the shipyards plan to use 100% Canadian steel for the job.

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Canada ‘could not accept what U.S. offered,’ Carney says

During the PM’s speech announcing the new shipbuilding deal, Carney said the goal of Canada’s negotiations was to get the best deal they could from the Trump White House.

“The goal of our trade negotiations with the United States has always been to get the best deal for Canadians, never a deal at any price, or on any time frame,” Carney said.

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“While we did make some progress in recent weeks, in the end that momentum reversed and we could not accept what the U.S. had offered, nor could we give what they asked.”

As for where Canada and the U.S. go from here, Carney said a mutually-beneficial deal is indeed possible — but it’s up to the Americans to agree to it.

“An attitude at the negotiation table that Canada is a subsidiary of the United States, that Canadian industry is going to be disadvantaged relative to American industry, that we are going to set up terms so that over time Canadian industry is going to face constant headwinds,” Carney said.

“That’s not something we’re going to accept.”

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