Canada spared new ‘Liberation Day’ Trump tariffs, Carney warns of ongoing economic risks

Canada will be spared from President Donald Trump’s new “Liberation Day” tariffs, but existing tariffs will stay in place, Liberal Leader Mark Carney said on Tuesday.

Carney explained that Trump’s latest measures will “fundamentally change the international treaty system.” 

He pointed out that while Canada’s “commercial relationship” with the United States remains mostly intact, fentanyl tariffs are still in force, as are tariffs on steel and aluminum.

“Now, in doing so, he has preserved a number of important elements of our relationship,” said Carney. 

“But the fentanyl tariffs still remain in place, as do the tariffs for steel and aluminum.”

Automobile tariffs will also take effect on Thursday.

Carney said the US has signalled it will introduce additional duties in strategic sectors such as pharmaceuticals, lumber, and semiconductors.

“We’re in a situation where there is going to be an impact on the US economy,” said Carney. 

“In our judgment, it will be negative on the US economy, and that will have an impact on us. But the series of measures will directly affect millions of Canadians.”

Carney promised that Canada would hit back. 

“We are going to fight these tariffs with countermeasures,” said Carney. 

“We are going to protect our workers and we are going to build the strongest economy in the G7.”

Carney urged Canadians to unite in the face of Trump’s tariffs. 

“In a crisis, it’s important to come together. It’s essential to act with purpose and with force, and that’s what we will do,” said Carney.

Carney did not offer specifics on the government’s next steps, but stressed his goal is to preserve Canadian jobs and limit disruptions to the economy. 

But, Carney warned that rising trade tensions could damage growth on both sides of the border.

“We’re not going to back down and we will take all necessary measures to protect our citizens and our economy,” said Carney.