Carney says Canada is assessing latest U.S. measures and may adjust retaliation
Ottawa is reviewing new U.S. trade restrictions and keeps a retaliatory response on the table, prolonging uncertainty for affected importers and exporters.
Prime Minister Mark Carney said on Sept. 10 that the federal government was examining the latest U.S. tariffs and import bans while deciding whether changes to Canada’s retaliatory duties are warranted. Speaking at a cabinet retreat in Banff, he characterized the new U.S. steps as meaningful for particular companies and sectors, but less consequential in aggregate than earlier U.S. actions. [1]
The latest round followed Canada’s recent retaliatory duties and came after bilateral trade talks stalled in August. According to the report, President Donald Trump then imposed 50 per cent tariffs on nearly US$28 billion in Canadian products, including honey, sunscreen, sporting equipment and milk; subsequent orders also barred imports of certain products, including most alcohol, and raised tariffs on other goods. [1]
Carney did not announce a specific countermeasure when asked whether Canada would retaliate again. He nevertheless indicated that a response remained available, while saying Ottawa would assess the measures in their broader context. For businesses covered by the new restrictions or any adjusted Canadian duties, that leaves near-term tariff exposure and sourcing decisions unsettled rather than establishing an immediate new cost or compliance requirement. [1]
The prime minister said Canada’s negotiating boundaries remain its ability to conclude trade agreements with other countries and protections for Canadian culture and the French language. He also said cabinet was concentrating on domestic economic capacity and trade diversification, topics ministers were set to discuss during the retreat. Carney added that he had spoken with Trump several times in recent days, including on matters beyond the trade dispute. [1]
For agriculture-linked trade, milk is among the Canadian goods identified as subject to the 50 per cent U.S. tariff, while the new import restrictions include most alcohol. However, the report does not specify which Canadian retaliatory tariff lines could be changed, when a decision may be made, or the value of trade that would be covered. The immediate development is therefore a pending Canadian policy review, not a confirmed expansion of retaliation. [1]
This is a low-to-moderate significance policy update because Carney confirmed that Canada is actively considering adjustments to retaliatory tariffs after new U.S. tariffs and import bans, creating uncertainty for directly exposed companies. The rating is not higher because Ottawa announced no specific tariff change, coverage, effective date or finalized response. [1]