Canada’s Prime Minister Mark Carney on Monday (Jan 26) sought to play down US President Donald Trump’s latest tariff threat against Canada, urging observers to view the remarks in the broader context of an impending review of the North American Free Trade Agreement.
Trump last week warned that Washington could impose tariffs of up to 100 per cent on Canadian imports if Ottawa moves ahead with finalising a new trade deal with China. Asked about the comments, Carney told reporters that the United States-Canada-Mexico Agreement (USMCA) is due for review this year and said Trump’s statements reflected familiar negotiating tactics.
“I think some of these comments and positioning should be viewed in the broader context of that,” Carney said, describing the US president as “a strong negotiator.”
Despite frequent threats, Trump has so far largely adhered to the core framework of the USMCA, which he negotiated during his first term in office and repeatedly hailed as a major achievement. While Canada has been hit hard by US sectoral tariffs—particularly on automobiles, steel and aluminium—more than 85 per cent of bilateral trade between the two countries has remained tariff-free during the ongoing trade disputes.
Economists and business groups in Canada have warned that substantial changes to the USMCA could have serious consequences for the Canadian economy, given the country’s heavy reliance on access to the US market. The agreement’s formal review, expected in the first half of this year, is therefore being closely watched in Ottawa and by Canadian industry.
The looming trade talks come amid an escalation in rhetorical clashes between Trump and Carney. The Canadian prime minister drew international attention last week at the World Economic Forum in Davos, where he delivered a sharp critique of US global leadership that earned a rare standing ovation.
Trump responded in his own Davos appearance, telling Carney to “watch his words” and claiming that “Canada lives because of the United States.” Carney rejected the assertion but has generally adopted a cautious tone in responding to Trump’s remarks.
Over the weekend, Trump referred to Carney as a “governor” in a social media post, reviving a jibe he previously directed at former prime minister Justin Trudeau by suggesting Canada was akin to a US state.
Asked on Monday whether he was offended by the comment, Carney brushed it off. “In this role, you get called a lot of things,” he said. “I’m not going to comment on every tweet. I can handle it.”
