Carney concedes Canada cannot match Trump tariffs ‘dollar for dollar,’ without harming Canadians

Prime Minister Mark Carney acknowledged on Monday that Canada is limited in how hard it can push back against President Donald Trump’s tariffs in the escalating trade war, saying for the first time that a “dollar-for-dollar” response is not realistic.

Carney made the comment at the end of a visit to England and France, where he met with French President Emmanuel Macron and British Prime Minister Keir Starmer to bolster security and economic ties with key Canadian allies. 

Although he campaigned on the promise of retaliating against American tariffs with equal force, Carney told reporters it’s simply not feasible for Canada to go “dollar-for-dollar” with an economy ten times its size.

“There’s a limit, full stop,” said Carney. 

“We can’t match these tariffs blow for blow. If we tried, we’d be imposing a massive cost on Canadian consumers for goods we rely on from the United States.”

Carney explained that matching tariffs on roughly $155 billion worth of US imports would require Canada to quadruple its planned counter-measures to $600 billion, risking serious damage to Canada’s economy. 

Trump has threatened to expand his tariffs on steel, aluminum, and other products to all trading partners, leaving other countries cautious about entering into an escalating trade war.

Carney insisted he was not trying to “organize co-ordinated retaliation” among Canada’s allies. 

Carney emerged from meetings with Macron and Starmer without a united public front to oppose Trump’s April 2 tariffs. 

Still, Carney said the European trip helped deepen relationships, especially in the push to support Ukraine. 

He has invited Ukrainian President Volodymyr Zelenskyy to attend the G7 summit in Kananaskis, AB, in June. 

Yet the prime minister returns with few guarantees on major trade files. 

France has not ratified the Canada-EU free trade agreement, and the Canada-UK deal is only provisionally in place. 

Talks to finalize both trade agreements appear stalled.

Carney admitted the potential for a global economic downturn remains real, pointing to the uncertainty caused by Trump’s trade threats. 

“Steel and aluminum tariffs alone are having an impact,” said Carney. 

“If the US continues on this path, the damage will only increase.”

Although he stressed that Canada “can stand up for ourselves,” Carney left the door open to using government procurement as leverage. 

He has ordered a review of Canada’s planned purchase of 88 F-35 fighter jets from US-based Lockheed Martin, suggesting Canada may buy European-made aircraft instead. 

Carney also doubled down on an industrial carbon tax, linked to rebates for green technology, saying Canada should seize any opportunity that arises from Trump’s withdrawal from climate commitments.

For now, there are no scheduled talks between Carney and Trump, but officials are trying to arrange a call this week. 

The prime minister maintained Canada does not need other nations to defend its interests. 

“We can do that ourselves,” said Carney.

“But these aggressive tariffs and disrespectful comments need to stop before we can have a serious conversation about our broader partnership.”

With those parting words, Carney ended his first trip abroad as prime minister, flying home to face the economic conflicts started by a White House determined to keep raising the stakes.