Canada weighing 'all options' after US threatens new tariffs

Canadian Prime Minister Mark Carney said Tuesday that his government is examining 'all options' following US President Donald Trump's plan to impose new 50% tariffs on many Canadian goods within 30 days. The threat marks a significant escalation in trade tensions between the two neighbors.

Carney stated that he and Trump had agreed to 'intensify discussions' over the coming weeks regarding a potential deal. However, the Canadian leader did not indicate any intention to travel to Washington for talks, suggesting a cautious approach to negotiations with the unpredictable US administration.

The proposed tariffs would hit a broad swath of Canadian exports, dealing a severe blow to Canada's economy, which is heavily integrated with the US market. Analysts warn that such measures could trigger retaliatory tariffs and harm businesses and consumers on both sides of the border.

Ottawa has previously signaled its willingness to defend its economic interests, and Carney's remarks underscore that Canada is prepared to push back. 'We are looking at all options,' he emphasized, hinting that while dialogue continues, Canada is ready to take countermeasures if talks fail.

This development is part of an ongoing trade dispute. Trump has already imposed tariffs on Canadian steel and aluminum and has threatened additional duties. Canada has responded with its own tariffs on US goods, and the current standoff raises the risk of a broader trade war.