Carney says US trade war 'will come at a cost' as Canada strikes back on tariffs — SkimNews
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- Carney acknowledged in a 15-minute video address that Canada's pivot from the US 'will come at a cost' but framed retaliatory tariffs as 'necessary to protect our workers' and pledged government support 'for as long as it takes.'
- Canada's counter-tariffs, ranging from 15% to 50%, took effect Tuesday on nearly C$28bn ($20bn; £15bn) of US goods, with steel, aluminium, milk, golf clubs, and T-shirts hit at the top 50% rate and cheese, toilet paper, and air conditioners at 25%.
- Trump threatened Monday to halt all US business with Bombardier unless the Canadian airplane maker moves manufacturing south; Bombardier contributed over C$7bn to Canada's 2024 GDP according to a PwC report commissioned by the company.
- Canadian Chamber of Commerce CEO Candace Laing urged a 'surgical approach' to retaliation, telling the BBC: 'Businesses understand retaliation but don't want to see endless escalation.'
- Canada's labour market showed strain in August with 41,000 jobs lost—a period that coincided with new US tariffs and the collapse of trade talks—even as Q2 GDP grew 3.3%.
- Canada's export diversification is underway: the share of Canadian exports bound for the US dropped to 66% in July from a pre-trade-war average of 75%, according to trade figures cited in the report.
Why it matters: Canadian consumers and exporters now absorb concrete costs—41,000 jobs lost in August and a nine-point drop in the US share of Canadian exports (from 75% to 66%)—as Carney's government pursues retaliation that the Canadian Chamber of Commerce warns could spiral without a 'surgical' approach.
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