Carney says he’s not ‘escalating the conflict’ as Canada hits U.S. with retaliatory tariffs

Prime Minister Mark Carney speaks to journalists outside his office the day after the Liberal's won three byelections, in Ottawa on Sept. 1, 2026. Photo by Blair Gable/Postmedia

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OTTAWA — On the same day Canadian tariffs on $28 billion worth of U.S. imports came into effect, Prime Minister Mark Carney said he doesn’t believe in escalating the trade conflict.

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“That’s not constructive,” said Carney, during a video address released on Tuesday. “But our tariffs are necessary protect our workers, protect our companies, and our communities.”

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Carney said his government can’t allow American goods into Canada tariff-free, while the U.S. charges Canadian companies to export.

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Canada’s latest round of tariffs against the U.S. is in response to U.S. President Donald Trump’s 50 per-cent tariff on $28 billion worth of Canadian goods under Section 338 of the Tariff Act of 1930. Trump slapped Canada with the new tariffs after trade talks between Canada and the U.S. broke down on Aug. 21.

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Carney announced a pause in negotiations last month and said several last-minute conditions in the draft text of an agreement made a deal with the U.S. untenable.

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“We worked in good faith to reach a fair deal, but since a fair deal wasn’t on the table, we made the right choice to walk away from a bad one,” Carney said Tuesday.

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Since trade talks were paused, there has been no communication between negotiators on both sides. The U.S. administration has vowed to respond to Canada’s latest round tariffs. Over the weekend, Trump took to TruthSocial where he attacked aircraft maker Bombardier and posted a photo of the North American continent covered in an American flag.

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Trump also took issue with the exchange rate and the value of the Canadian dollar. He called the loonie’s “imbalance” with the U.S. dollar “unacceptable.”

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Carney in his address warned that the trade conflict with the U.S. will come at a cost.

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“There’s always a cost to action, but it doesn’t come close to the cost of standing still,” he said. “This is about who we are as Canadians. It’s about our livelihoods and the country we leave to our kids.”

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More to come.

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National Post

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