By David Ljunggren and Maria Cheng
OTTAWA, July 23 (Reuters) – Canada will do whatever it takes to defend itself in a trade war with the United States, including possible retaliatory measures, Prime Minister Mark Carney told a meeting of provincial premiers on Thursday after the U.S. announced new tariffs.
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U.S. President Donald Trump announced on Monday new 50% tariffs on a variety of Canadian products to take effect on August 19.
“We are intensifying our trade negotiations with the United States and will not hesitate to defend our interests if we have to,” Carney told the meeting in Charlottetown, Prince Edward Island, describing the new U.S. measures as unwarranted.
“Everything’s on the table if there’s no agreement,” he said, speaking of potential countermeasures without providing specifics.
Trump and Carney agreed this week to intensify bilateral trade talks. This is occurring against the backdrop of Trump’s decision on July 1 not to extend the United States-Mexico-Canada Agreement trade pact for another 16 years, leaving it in force but requiring annual reviews.
The U.S. is negotiating with Canada and Mexico in separate tracks, and Washington has said it is making more progress with Mexico. That raises the risk that the U.S. might seek to force concessions on Canada that Mexico agrees to.
Carney said his government wanted to reach a comprehensive deal rather than agreements covering individual trade sectors.
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While Carney said he and provincial leaders were united, the 10 provinces are split over how to react. Alberta and Saskatchewan, which export crude oil and potash respectively to the United States, have ruled out export curbs or duties to increase pressure on Washington.
Ontario Premier Doug Ford called for Canada to match the U.S. tariffs, “dollar for dollar”, while acknowledging Carney was in a difficult position.
“One day, the prime minister is with him side by side, and the next thing, President Trump turns on him like a rabid dog,” Ford said.
British Columbia Premier David Eby suggested his province could cut U.S. access to its critical minerals exports, which include copper, zinc and aluminum.
“If the prime minister calls British Columbia and says he needs support with some big sticks to have conversations at the table, then we will be there,” he said.
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(Reporting by David Ljunggren; Editing by Chizu Nomiyama and Cynthia Osterman)
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