Canada's new Prime Minister Mark Carney said his administration would hold tariffs until the United States showed respect and committed to free trade, after U.S. President Donald Trump threatened Canada with an economic collapse of historic proportions.
Mr Carney, who will soon be sworn in as Justin Trudeau's successor, said Mr Trump's recent tariffs were an attack on Canadian workers, families and businesses.
His comments came shortly after Ontario Premier Doug Ford said he had agreed to reverse a threatened increase in U.S. electricity prices following a phone call with U.S. Commerce Minister Howard Lutnick.
“My government will ensure that our response has the maximum impact on the United States and the minimum impact on Canada, while supporting workers affected by these measures,” Mr. Carney said.
He added: “My government will maintain our tariffs until Americans show us respect and make credible commitments to free and fair trade.”
Trump said Tuesday he would double planned steel and aluminum tariffs on Canada from 25% to 50%, escalating a trade war with his northern neighbor and showing disdain for recent stock market wobbles and rising recession risks.
Mr Trump wrote on social media that the rate hikes, which take effect on Wednesday, were a result of the Ontario government's increase in electricity prices for supplies to the United States.
The US president condemned the use of electricity “as a bargaining chip and a threat,” adding in another social media post on Tuesday that Canada “will pay a financial price that will be written about in the history books for years to come!”
Ontario Premier Doug Ford said Tuesday that U.S. Commerce Minister Howard Lutnick had called him and Mr. Ford had agreed to lift the surcharge. He expressed confidence that the U.S. president would also back down on his plans to impose 50% tariffs on Canadian steel and aluminum.
“The president will have to respond to this, but I'm pretty sure he'll back down,” Mr. Ford said of Mr. Trump's threats to impose tariffs on steel and aluminum.
“We are not going to just give up. We are going to have a constructive dialogue.”
Mr Trump told reporters he was considering reinstating steel and aluminum tariffs on Canada at 25% and would “probably” do so
Sourse: breakingnews.ie
