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Mark Carney says he's ready to negotiate with Trump | Mark Carney says he's ready to negotiate with Trump |
(about 13 hours later) | |
Canada's Prime Minister-designate Mark Carney has said he is ready to negotiate a renewed trade deal with US President Donald Trump, as long as there is "respect for Canadian sovereignty". | |
Carney made these comments during a visit to a steel plant in Hamilton, Ontario, as Canada unveiled C$29.8bn ($20.7bn) in reciprocal tariffs on US imports. | |
Trump earlier slapped 25% tariffs on all steel and aluminium coming into the country. | |
Since Trump took office in January, the two countries have been involved in an escalating trade war, with the US president repeatedly threatening to annex its neighbour. | |
Carney condemned the latest round of US tariffs as "unjustified" on Wednesday. | |
"We're all going to be better off when the greatest economic and security partnership in the world is renewed, relaunched," he said. | "We're all going to be better off when the greatest economic and security partnership in the world is renewed, relaunched," he said. |
Canada, which is the biggest foreign supplier of steel and aluminium to the US, is heavily exposed to the tariffs. | Canada, which is the biggest foreign supplier of steel and aluminium to the US, is heavily exposed to the tariffs. |
Trump has justified the tariffs, claiming they were necessary for US national security and to boost demand for domestic producers, which he argues has been "depressed" by foreign competition. | |
What are tariffs and why is Trump using them? | What are tariffs and why is Trump using them? |
Is the US really heading into a recession? | Is the US really heading into a recession? |
The US president implemented a blanket 25% tariff on goods from Canada and Mexico, citing concerns over drugs and migrants crossing the US border. | |
The tariffs on steel and aluminium, effective from Wednesday, mark the end of exemptions previously granted to several countries, including Canada. | |
In retaliation, Canada announced tariffs on US goods, including steel and aluminium, with additional measures set to take effect at 00:01 EST (04:01 GMT) on Thursday. | In retaliation, Canada announced tariffs on US goods, including steel and aluminium, with additional measures set to take effect at 00:01 EST (04:01 GMT) on Thursday. |
The new tariffs cover a range of products, including C$12.6bn on steel, $3bn on aluminium, as well as tools, computer equipment, water heaters, sports equipment, and cast-iron products. | |
Watch: Canada announces C$29.8bn worth of reciprocal tariffs against US | |
Experts say the growing trade dispute threatens economic stability for both countries. | |
On Wednesday, Canada's central bank cut interest rates to 2.75% from 3% to prepare the country's economy for disruption. | On Wednesday, Canada's central bank cut interest rates to 2.75% from 3% to prepare the country's economy for disruption. |
Canadian Finance Minister Dominic Leblanc told a news conference that the country was still seeking to de-escalate. | Canadian Finance Minister Dominic Leblanc told a news conference that the country was still seeking to de-escalate. |
"If you're racing to the basement, there's no real prize for the first person to get to the basement," he said. | |
On Thursday, Ontario Premier Doug Ford, along with federal representatives, will meet US Commerce Secretary Howard Lutnick. | On Thursday, Ontario Premier Doug Ford, along with federal representatives, will meet US Commerce Secretary Howard Lutnick. |
Lutnick told Fox Business that at the meeting he plans to try to "level set" things between the two nations. | |
Mark Carney, who was elected leader of the governing Liberal Party on Sunday, is set to be sworn in as prime minister, replacing Justin Trudeau. He has promised to win the trade war against Trump, following his landslide victory. | Mark Carney, who was elected leader of the governing Liberal Party on Sunday, is set to be sworn in as prime minister, replacing Justin Trudeau. He has promised to win the trade war against Trump, following his landslide victory. |
With reporting from Jonathan Josephs and Lisa Lambert | With reporting from Jonathan Josephs and Lisa Lambert |
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