Carney rejects US 'subsidiary' attitude as Canada braces for retaliatory tariffs
Canada will hit back with tariffs Tuesday after Carney accused Washington of treating Canada as a subsidiary in trade talks.
Prime Minister Mark Carney has firmly rejected any suggestion that Canada should be treated as a subsidiary of the United States in trade negotiations, as Ottawa prepares to announce retaliatory tariffs on Tuesday.
Speaking in Quebec on Monday, Carney said Canada is open to improving the existing trilateral trade arrangement with the US and Mexico, but only on terms that respect Canadian sovereignty and independence.
"An attitude at the negotiation table that Canada is a subsidiary of the United States... that's not something we're going to accept," Carney said.
He argued that the current automotive partnership between the two countries has been the most successful in history, spanning 60 years. However, he said the terms being offered by Washington would gradually disadvantage Canadian industry, and Ottawa would not accept them.
Carney suggested that instead of matching US tariffs dollar-for-dollar, Canada may adopt more targeted retaliation aimed at protecting Canadian workers and businesses.
The sharp exchange follows a breakdown in trade talks late Friday, after which President Donald Trump threatened new 50% tariffs on Canadian vehicles, auto parts, and steel, affecting roughly $20 billion in goods.
Trump also told Canadian leaders to "fall in line" or face consequences "far worse" than existing tariffs.
The two countries share one of the world's largest trading relationships, with deeply integrated supply chains across autos, energy, agriculture, and manufacturing. A prolonged trade fight could prove costly for businesses and workers on both sides of the border.
Carney said a mutually beneficial deal is still possible, but it must use the two countries' complementary strengths to build something better, not tear apart for short-term gain.