Prime Minister Mark Carney said Canada is still working on options to retaliate against US President Donald Trump’s new tariffs on Canadian goods, while adding that he is prepared to continue trade talks if Washington changes its stance.

Speaking at a news conference in Quebec on Monday, Carney said he was continuing discussions with US negotiators. He added that there is a mutually beneficial deal possible, but only on terms Canada considers fair.

US Plans more Auto Tariffs From January

The discussions with U.S. negotiators revealed that Trump wants to destroy Canada’s major industries — steel, aluminum and autos — with unfair terms, Carney said.

Carney told reporters that the government is aiming for a settlement that respects Canada’s sovereignty and independence and uses the countries’ complementary strengths rather than breaking up industries for short-term gain.

His remarks came hours after Trump said he would raise tariffs on Canadian-made autos to 50 per cent from 1 January. Trump also said auto parts would face tariffs, reversing the current approach.

At present, the 25 per cent tariff applies only to non-US content within finished vehicles, while auto parts crossing the border remain tariff-free.

The warning came after the Trump administration imposed 50 per cent tariffs on about US$20 billion worth of Canadian exports from Saturday morning. The measures cover products including furniture, plastics, plywood and electrical equipment.

The two sides had held talks aimed at preventing the new levies, but negotiations ended on Friday, with each side blaming the other for the breakdown.

Canada’s Counter-Tariffs and Possible Targets

Carney said his government has pledged to respond with counter-tariffs by 8 September, covering American steel, dairy, appliances, agricultural equipment, electronics and pulp and paper. He said officials are still preparing the detailed list of goods.

He also said the government will provide support for industries affected by the new US duties.

Carney argued that the negotiation approach was unacceptable, saying Canada would not accept terms that treat Canadian industry as subordinate to the US or that create ongoing disadvantages compared with US producers.

While Canada is considering retaliation, Carney said he preferred to try “positive” steps first, including building new coast guard vessels using Canadian steel, which he announced with Quebec’s premier.

He said the government is examining a range of options and did not rule out measures involving critical minerals, energy or other exports to the US.

“The strategic and symbolic scope of reprisals are very important,” Carney said, adding that Canada would seek action “where there’s sensitivity”. He acknowledged that matching the US dollar-for-dollar would be difficult given the size of the American economy, suggesting Canada’s response may need to be more targeted.

Negotiations, Social Media Pressure and Sector Fallout

Carney previously said talks collapsed for several reasons. Negotiators discussed reducing US auto tariffs to 15 per cent, but the US would not extend the relief to medium- to heavy-duty trucks, including vehicles produced at Ford Motor Co.’s plant in suburban Toronto.

He also said the US pushed to limit Canada’s ability to strike trade deals with other countries and made demands relating to cultural and French-language issues that Canada rejected.

While Carney was speaking, Trump again posted on social media, referring to Carney as “governor” and criticising Ontario Premier Doug Ford, warning of consequences for Canada.

The US trade representative, Jamieson Greer, said Canada made late demands that overturned the draft agreement. Greer said the proposal would have cut tariffs on autos, steel, aluminium and lumber and set cooperation on export controls, digital trade and joint tariffs. It would also have started formal talks to renew the Canada-US-Mexico Agreement (CUSMA), which Trump negotiated in his first term but declined to renew this year.

Parts of Canada’s economy have already been hit by losses and layoffs linked to earlier sectoral tariffs, including Ontario auto plants and steel mills. Some smaller manufacturers had been protected earlier because US exemptions applied to goods shipped under CUSMA, but the new 50 per cent levies—ordered under a rarely used 1930 Tariff Act provision—do not follow that framework.

Carney said that if Trump follows through with 50 per cent auto tariffs, the move would disrupt supply chains that have connected the two countries’ auto sectors for decades.

Join the discussion?

25 August 2026

View full article

Taxania has one thing that the US dearly wants... the greatest abundance of fresh water on Earth.

Carney built up a lot of bad karma during his time as governor of the bank of England, especially with his anti-Brexit stance.

That Trump is delivering the fruits of said karma, pleases me greatly.

Suck it up Carney, you were all for trade protectionism when the EU was doing it. Now, enjoy it from the other side of the fence. 😄

5 minutes ago, koolkarl said:

Taxania has one thing that the US dearly wants... the greatest abundance of fresh water on Earth.

That plus integrity, respect, credibility, honour, pride and all other virtuous qualities the US no longer has.

4 minutes ago, JonnyF said:

Carney built up a lot of bad karma during his time as governor of the bank of England, especially with his anti-Brexit stance.

Sounds as if Carney was the smarter one.

4 minutes ago, CallumWK said:

Sounds as if Carney was the smarter one.

So why doesn't he want Canada to join the USA?

Suddenly a fan of sovereignty and self governance? 😄

Subjugation for thee but not for me.

during his time as governor of the bank of England, especially with his anti-Brexit stance.

That built up his reputation.

He's an honorable respected leader of a free Canada

I keep seeing more and more Canucks asking to see what was in the agreement that their side chose to walk away from, after doing virtually nothing for 18 months. They didn't ask to keep negotiating. They walked away.

Not the MSM talking points. The actual agreement.

I'm kind of curious myself.

Just now, newbee2022 said:

during his time as governor of the bank of England, especially with his anti-Brexit stance.

That built up his reputation.

He's an honorable respected leader of a free Canada

That's sarcasm, right?

2 minutes ago, JonnyF said:

So why doesn't he want Canada to join the USA?

Suddenly a fan of sovereignty and self governance? 😄

Subjugation for thee but not for me.

You still don't understand the difference between the EU and US, Jonny? Did the UK give up their sovereignty by joining the EU trade union?

No wonder you are still whining about Brexit.

1 minute ago, CallumWK said:

You still don't understand the difference between the EU and US, Jonny? Did the UK give up their sovereignty by joining the EU trade union?

Yes, we gave up sovereignty by being part of the EU.

That's why we left.

Come on Canada, give up yours. You might get a few % GDP points. Why not join you biggest trading partner, politically. Let technocrats in Washington run your country.

No? Why not? Must be little Canadians, bigots, racists etc.

1 minute ago, CallumWK said:

No wonder you are still whining about Brexit.

Whining? 😄 I'm thrilled with Brexit. I want even greater separation from the EU but i will have to wait until the next general election for that.

15 minutes ago, newbee2022 said:

That built up his reputation.

He's an honorable respected leader of a free Canada

So he wants Canada to be free from US rule, but he's perfectly OK with Britain being ruled by EU technocrats and unelected politicians.

Sounds a little hypocritical. 😄

But then, he is a leftist so par for the course really...

2 minutes ago, JonnyF said:

So he wants Canada to be free from US rule, but he's perfectly OK with Britain being ruled by EU technocrats and unelected politicians.

Sounds a little hypocritical. 😄

But then, he is a leftist so par for the course really...

Well, there is doubt about of Brexit being the biggest mistake after WW2.

Btw EU is "ruled" by elected politicians.

Democratic Voting: Every five years, EU citizens directly elect Members of the European Parliament (MEPs).

The Nomination: Following Parliament elections, the heads of state of all EU countries (forming the European Council) meet to nominate a candidate for President of the European Commission.

7 minutes ago, JonnyF said:

Yes, we gave up sovereignty by being part of the EU.

That's why we left.

Seems you're wrong again Jonny.

AI Overview

The UK did not completely give up its sovereignty by joining the EU, but it did legally pool and limit its supreme law-making power. [1, 2]

How Sovereignty Was Affected

• Pooling Power: By passing the European Communities Act 1972, the UK Parliament chose to share sovereign authority with other European nations to influence trade, laws, and security. [1, 2, 3]

• Supremacy of EU Law: While a member, if a British law conflicted with European law, EU law took precedence in the courts. [1]

• Retained Ultimate Legal Control: Legally, the UK Parliament remained sovereign because it always had the absolute power to repeal the 1972 Act and leave the EU—which it ultimately did via Brexit. [1, 2]

8 minutes ago, JonnyF said:

Whining? 😄 I'm thrilled with Brexit. I want even greater separation from the EU but i will have to wait until the next general election for that.

Sure, because you don't live in the UK, and have to experience the failures UK citizens that voted Brexit have to bear.

Like every far right supporter, you like to continue shouting on your soapbox, but from a safe distance.

https://panmureliberum.com/the-bigger-failure-of-brexit-was-everything-else-we-stopped-talking-about/

The Bigger Failure of Brexit Was Everything Else We Stopped Talking About

By Simon French, Chief Economist and Head of Research

1 minute ago, CallumWK said:

Supremacy of EU Law: While a member, if a British law conflicted with European law, EU law took precedence in the courts. [1]

Thanks.

You just proved my point.

4 minutes ago, newbee2022 said:

The Nomination: Following Parliament elections, the heads of state of all EU countries (forming the European Council) meet to nominate a candidate for President of the European Commission.

No citizen of an EU member state voted for Von Der Leyen.

There are enough layers between the votes of citizens and where the power is held to make the vote meaningless.

That's how it is designed.

2 minutes ago, JonnyF said:

Thanks.

You just proved my point.

What a shame that you didn't see the next point. Are it the eye blinkers, or is it you ignorance and attempt to spout far right lies to make your point?

5 minutes ago, CallumWK said:

Retained Ultimate Legal Control: Legally, the UK Parliament remained sovereign because it always had the absolute power to repeal the 1972 Act and leave the EU—which it ultimately did via Brexit. [1, 2]

21 minutes ago, impulse said:

I keep seeing more and more Canucks asking to see what was in the agreement that their side chose to walk away from, after doing virtually nothing for 18 months. They didn't ask to keep negotiating. They walked away.

Not the MSM talking points. The actual agreement.

I'm kind of curious myself.

I believe one of the last minute added US clauses is that Canada needs to cut back on exports to other Nations, quite contrary to what's occurring presently and in the forecast, feels like a bit of cactus in the arse.....which has nothing to do with USA-Canada trade. Carney would possibly sign that in pencil......

8 minutes ago, CallumWK said:

Pooling Power: By passing the European Communities Act 1972, the UK Parliament chose to share sovereign authority with other European nations to influence trade, laws, and security. [1, 2, 3]

Again, proved my point Callum. 😄

If an authority must share its power or can be overridden by another entity, it is no longer truly sovereign. It has merely delegated power or submitted to a higher authority.

5 minutes ago, CallumWK said:

What a shame that you didn't see the next point. Are it the eye blinkers, or is it you ignorance and attempt to spout far right lies to make your point?

11 minutes ago, CallumWK said:

Retained Ultimate Legal Control: Legally, the UK Parliament remained sovereign because it always had the absolute power to repeal the 1972 Act and leave the EU—which it ultimately did via Brexit. [1, 2]

In other words the only way to remain sovereign was to leave. Which we did. 😄

3 minutes ago, CANSIAM said:

I believe one of the last minute added US clauses is that Canada needs to cut back on exports to other Nations, quite contrary to what's occurring presently and in the forecast, feels like a bit of cactus in the arse.....which has nothing to do with USA-Canada trade. Carney would possibly sign that in pencil......

Like I said, I'm curious myself. I'd be inclined to believe that the US side warned Canada that we're not going to tolerate trans shipments as "Made in Canada", and Carney morphed that into "trying to dictate who Canada can do business with. That's why I (and more and more Canucks) would like to see the actual agreement they walked away from.

4 minutes ago, JonnyF said:

In other words the only way to remain sovereign was to leave. Which we did. 😄

Yeah which you did, with all the negative consequences as summed up here.

17 minutes ago, CallumWK said:

https://panmureliberum.com/the-bigger-failure-of-brexit-was-everything-else-we-stopped-talking-about/

The Bigger Failure of Brexit Was Everything Else We Stopped Talking About

By Simon French, Chief Economist and Head of Research

How long it has been since you lived in the now perfect UK, as you want to display it?

Just now, CallumWK said:

Yeah which you did, with all the negative consequences as summed up here.

How long it has been since you lived in the now perfect UK, as you want to display it?

Perfect UK? It's going down the toilet.

Due to leftists policies. Not due to Brexit.

3 minutes ago, JonnyF said:

In other words the only way to remain sovereign was to leave. Which we did. 😄

A broad consensus among official and academic sources holds that Brexit has left the UK economy smaller than it would otherwise have been.

Goods trade with the EU has underperformed (exports often estimated 12–16% lower than a remain path; absolute levels in some series still below pre-2019 peaks in real terms).

Overall net migration rose sharply after 2021 (peaking near 900,000), we no longer have the Dublin Regulation or access to Eurodac enabling us to return those arriving on small boats, in this area BREXIT has had the opposite effect.

https://www.realinstitutoelcano.org/en/commentaries/ten-years-on-from-the-brexit-referendum-is-the-uk-better-off/

https://commonslibrary.parliament.uk/research-briefings/cbp-10988/

https://obr.uk/forecasts-in-depth/the-economy-forecast/brexit-analysis/

19 minutes ago, JBChiangRai said:

A broad consensus among official and academic sources holds that Brexit has left the UK economy smaller than it would otherwise have been.

So, you think Canada should give up its sovereignty to the US and become the 51st state if it means the economy grows faster?

Who in their right mind wants to be part of a country that is bankrupt, military that’s proven to be ineffective, government owned by a foreign country etc.

52 minutes ago, JonnyF said:

No citizen of an EU member state voted for Von Der Leyen.

There are enough layers between the votes of citizens and where the power is held to make the vote meaningless.

That's how it is designed.

No, the facts are different. But you can believe what you want, doesn't bother me. Check EU official websites

43 minutes ago, JBChiangRai said:

A broad consensus among official and academic sources holds that Brexit has left the UK economy smaller than it would otherwise have been.

Goods trade with the EU has underperformed (exports often estimated 12–16% lower than a remain path; absolute levels in some series still below pre-2019 peaks in real terms).

Overall net migration rose sharply after 2021 (peaking near 900,000), we no longer have the Dublin Regulation or access to Eurodac enabling us to return those arriving on small boats, in this area BREXIT has had the opposite effect.

Those weren't the results of Brexit. Those were the results of bad decisions made after Brexit.

Edit: In fact, I'd characterize them as suicidal empathy, if not downright treason.

Edited August 25Aug 25 by impulse

1 hour ago, JonnyF said:

So he wants Canada to be free from US rule, but he's perfectly OK with Britain being ruled by EU technocrats and unelected politicians.

Sounds a little hypocritical. 😄

But then, he is a leftist so par for the course really...

You do know that the UK held elections for those to serve in the EU and represent UK interests, don't you? Obviously not. The most high profile one was a certain Nigel Farage. The fact that most didn't bother to vote is hardly grounds for them then complaining about being 'ruled' by the EU. On that, ask people what rules they objected being victims of and you'd get a blank stare, apart from the EU famously determining the shape of bananas. The rules the UK benefitted from included airline compensation for delayed or cancelled flights and no (or greatly reduced) phone roaming charges while in Europe. The UK then had to pass new laws to reinstate the EU laws people objected to. Then there was the freedom to seamlessly work and travel within the EU....gone.

33 minutes ago, AustinRacing said:

Who in their right mind wants to be part of a country that is bankrupt, military that’s proven to be ineffective, government owned by a foreign country etc.

That is a definition of a sh... hole country that is presided by a corrupt and incompetent leader aka current state of USA.