Carney threatens to raise tariffs on US if Trump talks fail

Telegraph

5 hours ago

Mark Carney has threatened to increase Canadian tariffs on US steel if crunch trade talks with President Trump fail.
On Thursday, the Canadian prime minister said he would amend his country's 25pc tariff on US steel and aluminium imports to a level 'consistent with the progress' of the negotiations.
He added that he wanted to 'reinforce' his country's strength in negotiations with the US president as he announced a sweeping package of measures aimed at hurting American exports.
The move paves the way for Canada to increase its counter-tariffs if talks fail, or reduce them if Mr Trump makes concessions.
Mr Carney discussed tariffs with Mr Trump earlier this week and both leaders have agreed to begin a month-long series of negotiations.
He said: 'We'll take all the time we need to get the best deal for Canada, but no longer. And seeing progress that's been made, President Trump and I agreed to pursue negotiations towards a deal within the coming 30 days.
'We'll continue these negotiations, of course, in good faith. In parallel, we must reinforce our strength at home and safeguard Canadian workers and businesses from the unjust US tariffs that exist at present.'
The talks come three months after President Trump imposed 25pc tariffs on all imported steel and aluminium, and weeks after he raised them to 50pc.
The measure is especially punishing for Canada because it is the largest supplier of foreign steel and aluminium to US markets.
Mr Carney said late on Thursday that Canada would raise its counter-tariffs if a deal is not reached within 30 days.
'Canada will adjust its existing counter-tariffs on US steel and aluminium products on June 21, at the end of that 30-day period ... to levels consistent with the progress that's made at that point on the broader trading arrangements with the United States,' he said.
Mr Carney, a former Governor of the Bank of England, also announced plans to ban Canadian government products from using US steel unless the world's largest economy offers tariff-free access to Canadian steel.
The measures come after repeated attacks on the usually close US-Canadian relationship by Mr Trump. Since being elected last November, the US president has repeatedly called for Canada to become America's 51st state.
Mr Trump announced a series of tariff increases on Canada, with the White House claiming in February that the US was responding to a 'national emergency' caused by the 'extraordinary threat posed by illegal aliens and drugs'.
Leaders at the G7 summit in Canada on Monday pushed Mr Trump to back away from his punishing trade war.
Mr Trump said that he believed that scoring a deal with Canada in the coming weeks was 'achievable'.