Canada Vows to Cut US Reliance as Retaliatory Tariffs Take Effect

Canadian Prime Minister Mark Carney announced on Tuesday that Ottawa would accelerate efforts to reduce its economic dependence on the United States, as retaliatory tariffs on approximately $20 billion worth of American goods came into effect. The move is a direct response to a series of levies imposed by the Trump administration, which Canada says violate the US-Mexico-Canada Agreement.

In a prerecorded address, Carney argued that decades of deep economic integration had left Canada overly reliant on its southern neighbour. "In too many areas, they wanted dependency, not a true economic partnership," he said, adding that the country had been steering its economy toward more reliable partners over the past year and a half.

The prime minister acknowledged the latest US trade actions would cause short-term pain but insisted that standing still would cost more in the long run. He defended Canada's retaliatory measures, which match US tariffs dollar for dollar, saying, "We can't let American goods into Canada tariff-free while they charge our companies to export to them."

The tariffs target hundreds of American products—including steel, aluminum, cheese, appliances, clothing, cosmetics, and farm equipment—at rates of 15%, 25%, or 50%. The affected goods represent roughly 6% of the $333.6 billion the US exported to Canada last year.

Carney also defended Canada's decision to walk away from trade talks in August, citing Washington's demands on French-language protections, influence over future deals, and terms that would weaken key sectors. While Canada is not seeking to escalate the confrontation, officials say the tariffs are necessary to protect Canadian workers.

Gabriel Brunet, a spokesman for Canada-US Trade Minister Dominic LeBlanc, confirmed that officials from both countries remain in contact, though formal negotiations have not resumed. Former US trade official Wendy Cutler noted that neither side appears eager to make the first move, given Carney's rising approval ratings and the risk of appearing weak.

The dispute has fueled public anger in Canada, with citizens boycotting US goods and cutting travel south of the border. Carney praised these efforts, saying, "Every time we choose to buy Canadian and travel in Canada, we are sending a message that nobody is in the stands, 40 million of us are on the ice."