Prime Minister Mark Carney says the federal government is still studying the United States' latest tariffs and import bans as it considers whether to adjust its own retaliatory tariffs.
Speaking to reporters on Thursday in Banff, Alta., where he is attending a two-day cabinet retreat, the prime minister said that while the measures are significant for some sectors, they are "relatively modest" compared to previous moves by the U.S.
"We take that into context," he said.
U.S. President Donald Trump signed new orders to ban imports of some products, including most alcohol, and increase tariffs on some others on Tuesday after Canada imposed its latest set of retaliatory duties on the United States.
That happened after trade talks reached an impasse in August, which led to Trump imposing 50 per cent tariffs on nearly $28 billion worth of Canadian goods ranging from honey and sunscreen to sports equipment and milk.
The two sides have blamed each other for the trade hostilities and Canada has accused the U.S. of trying to impose last-minute demands.
Carney said Thursday that Canada's "red lines" in trade negotiations remain in place: retaining the sovereign right to sign trade agreements with other countries and protecting Canadian culture and the French language.
He said his cabinet is focused on how to "build at home" and diversify its trade abroad and ministers will discuss those goals at their meetings this week.
The prime minister was asked Thursday whether Canada will retaliate after the latest U.S. trade assault.
While he did not give a clear response, the prime minister did say that the new measures are significant for individual companies and sectors and "there's a response there."
Earlier Thursday, Carney met with Ukrainian President Volodymyr Zelenskyy and announced that Canada will work with Ukraine to produce millions of drones for the Canadian military. He also promised more air defence support for Ukraine and said the two nations signed joint statements on energy co-operation and defence.
At a news conference with Zelenskyy, Carney said Thursday he had spoken to Trump "a couple of times" in recent days as the trade war between the two countries continued to escalate.
"We continue to work with the United States. We can compartmentalize across this," Carney said in response to a question about Canada's role in pursuing peace in Ukraine.
The prime minister said part of the leaders' responsibilities is to work together to resolve global issues like the war in Ukraine. Carney said he and Trump also spoke about the war in Iran and "other global developments."
The Prime Minister's Office confirmed the two leaders have spoken in the last few days but would not say exactly when the conversation took place, or whether it was before or after the latest escalation in trade actions.
"Canada is always ready to strike a fair deal," Carney said Thursday. "We believe there's a mutually beneficial deal for Canada and the United States and our team, myself, are ready."
Canadian politicians are pushing back on Trump's executive orders limiting Canadian businesses' access to procurement contracts and deploying a new set of tariffs.
The five new orders, which will take effect Sept. 29, will completely bar imports of certain Canadian goods, including motorcycles, some dairy products and alcoholic beverages.
They also remove some items from the tariff list completely, such as toilet paper and cement, while adding new products to be tariffed, including additional dairy products.
Ontario Premier Doug Ford said Thursday that businesses affected by tariffs and bans will be eligible for the province's support programs.
In a speech to the Toronto Region Board of Trade, Ford said Ontario will expand eligibility for its tariff support programs to the affected industries so they can keep the lights on.
New Brunswick Premier Susan Holt has ordered the province’s public sector to stop buying American products when Canadian substitutes are available. She said the move is a response to the latest round of U.S. tariffs.
Holt said her government is also looking to see if it has the authority to prevent Americans from obtaining fishing and hunting licences, as well as mining claims.
Her government will also ban the purchase of U.S. goods and services for contracts valued at more than $5 million starting Oct. 1.
Picture Courtesy: THE CANADIAN PRESS/Jeff McIntosh
