Prime Minister Mark Carney of Canada said he is reviewing every response option in case the United States and Canada fail to reach an agreement over the 50% tariff previewed by U.S. President Donald Trump.
According to Bloomberg and other foreign media on the 23rd local time, Carney told reporters after meeting with provincial governors in Charlottetown, Prince Edward Island, "Depending on the outcome of the talks (with the United States), if no agreement is reached, all options are on the table."
However, Carney declined to comment on specific retaliatory measures Canada could take if the U.S. tariff takes effect.
Carney said negotiators from both countries are currently conducting talks that cover all existing tariffs and trade measures in place. Asked whether Trump's tariff threat is an opportunity to clinch a deal or a pressure tactic, Carney said, "Both."
He added, "If you look at the series of trade negotiations the United States has conducted, there is generally a negotiation deadline, and at that deadline there were very high tariffs."
Earlier, Trump said he would impose a 50% tariff on Canadian products such as beer, hockey equipment, packaging materials, and electrical equipment, citing Section 338 of the Customs Act enacted in 1930 during the Great Depression. The tariff, which takes effect starting on the 19th of next month, affects about 5% of Canada's goods exports to the United States.
Canada withdrew most of the retaliatory tariffs it had imposed on U.S. products last September, but is maintaining some tariffs on steel and automobiles. Some provincial governments are also still halting sales of U.S. alcoholic beverages at government-run liquor stores.