August 5,2025
RED FM News Desk
Prime Minister Mark Carney showed no intention of retaliating against U.S. President Donald Trump’s newly imposed tariffs—and even indicated he’s open to lifting some existing Canadian tariffs if doing so would benefit domestic industries.
Carney faced questions on Tuesday about Canada’s response after trade talks with the U.S. failed to produce a deal by the August 1 deadline. As a result, a 35 per cent import tax now applies to certain Canadian goods not covered by the Canada-U.S.-Mexico Agreement (CUSMA), which governs trade among the three nations.
“We’ve always said we’ll impose tariffs where they have maximum impact on the U.S. and minimal impact on Canada,” Carney explained when asked why his government hadn’t responded with similar tariff increases. “So we don’t automatically match them. We look at what’s most effective for our own industries. In some cases, that might mean removing tariffs.”
He added that the government would consider such measures if they serve Canada’s broader interests: “In the end, we’re focused on doing what has the greatest positive impact for Canada.”
Carney’s openness to cutting tariffs is particularly significant in light of Trump’s recent decision to give Mexico a 90-day reprieve from tariff hikes to allow more time for negotiating a new agreement. Carney’s next moves will be closely watched as he balances domestic pressures with dealing with an unpredictable U.S. president.
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