Prime Minister Mark Carney said the US has not imposed new tariffs on Canada, but the previously announced taxes remain, and Canada is dealing with people with retaliatory tariffs.
In Canada, the initial 10% and 25% tariffs on Canadian and Mexican energy imports related to illegal migration and fentanyl trafficking will remain unchanged. The current exemptions for products covered by the US-Mexico-Canada Agreement (USMCA) free trade agreement, which took place on March 6th, remain. The 25% tariff on cars announced a few weeks ago is expected to apply to Canada on April 3rd. The Trump administration previously announced a 25% tariff on all aluminum and steel imports from Canada.
Carney said President Donald Trump’s latest announcement “saved many important elements of our relationship,” but he was troubled by the remaining tariffs. He said Canada is responding with its own retaliatory tariffs.
“The series of measures will directly affect millions of Canadians. We will fight against these tariffs and measures. We will protect our workers and build the most powerful economy in the G7,” Carney told reporters in Ottawa on April 2.
Carney is scheduled to meet with the prime minister on April 3, and following the meeting he said “we can say more.”
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Kearney also said Trump plans to impose additional tariffs on the US, including drugs, timber and semiconductors, related to the “so-called strategic sector.” “So we are in a situation where we have an impact on the US economy and it will be built over time…but the set of measures will directly affect millions of Canadians,” he said.
Carney added that mutual tariffs around the world “fundamentally change the international trade system.”
Trump said mutual tariffs correspond to similar measures placed on the US by other countries.
Mutual tariffs in other countries include 34% in China, 26% in India, 24% in Japan, 20% in the European Union, and 10% in the UK and Australia. The White House said these tariffs are lower than those imposed by countries that impose on the US, including “currency manipulation and trade barriers.”
The White House said that if the fentanyl and illegal immigration issues are resolved, Canada defaults to the new mutual tariff system, where USMCA products continue to provide “priority treatment” by default, while other products have a 12% mutual tariff.
Canada previously announced a counter-off on US goods of about $30 billion, but the second phase of tariffs on US exports of $125 billion was due to commence on March 25th, but was delayed. Ottawa also implemented approximately $29.8 billion in US goods on March 12, in response to US 25% tariffs on steel and aluminum.
While speaking at a rally in Kingn, Ontario, conservative leader Pierre Poilierble said the next automobile fare was a “unfair attack” on Canada’s economy.
“For decades, workers on both sides of the border have locked up arms to build the world’s largest auto sector. The president is betraying America’s closest friends and attacking our economy,” he said.
Poilievre has said in the past that he has supported the dollar’s retaliation against US tariffs.
Premier response
Alberta Premier Daniel Smith called the new White House announcement “an important victory for Canada and Alberta,” and said the US has “decided to support a large portion of the Free Trade Agreement (USMCA).”
Smith called for the Prime Minister to shift his focus to reducing or removing the remaining tariffs completely, and all Canadian decision-makers to focus on diplomacy and persuasion “not an unnecessary escalation.”
Saskatchewan Prime Minister Scott Moe said he was “concerned about the previously announced tariffs on Canada’s steel and timber,” and said his government would continue to engage with Americans to remove tariffs.
Nova Scotia Prime Minister Tim Houston said Canada was “attacked by a worst-case scenario from a tariff standpoint,” but said thousands of Nova Scotians were affected by the rest of the tariffs.
He added that the state’s retaliation measures remain intact.
“This means that when reviewing and canceling non-essential contracts with US suppliers, we will continue to look for ways to first place Nova Scotia and Canadian companies,” he said. “The increase in tolls from the US commercial vehicle Cobequid Pass remains. American alcohol remains off the shelf at Nova Scotia Liquor Park.”
