Mark Carney, a leading candidate for the Canadian prime minister’s position, has declared that Canada will “stand up to a bully” in response to US President Donald Trump‘s announcement of a 25% tariff on Canadian goods.
In an exclusive interview with BBC Newsnight, 59-year-old Carney stated that Canada will “match dollar for dollar the US tariffs.”
As of Saturday, the White House has implemented a 25% tariff on imports from Canada, alongside similar tariffs of 25% on Mexico and 10% on China.
Carney, who declared his candidature for the leadership of Canada’s governing Liberal Party in January, previously served as the governor of both the Bank of Canada and the Bank of England.
He is one of five contenders vying to take over the role of Prime Minister from Justin Trudeau, having garnered the most substantial backing from Liberal MPs.
The leadership race is set to conclude on March 9.
The upcoming victor will take over from Trudeau, who declared his plan to step down in January after nearly a decade in power, assuming the roles of both prime minister and party leader.
Canada is set to conduct a federal election to select a new government by October 20. Currently, the Liberal party finds itself behind its Conservative opponents in the polls.
Following the tariff announcement, Carney told Newsnight, “President Trump likely believes Canada will yield.””We will confront the bully and refuse to retreat,” he stated.
“We stand together, and we will respond.”The ex-governor of the Bank of England warned that the tariffs would “harm the US’s standing globally.”
“They are poised to achieve significant growth.” Inflation is set to rise. “Interest rates are set to increase,” he stated.He noted that this marks the “second time” in under ten years that the US has effectively “ripped up a trade agreement with its closest trading partner.”
In 2020, as Donald Trump‘s first term drew to a close, the US-Mexico-Canada Agreement (UCMCA) was implemented. It served as a modernised version of Nafta, the longstanding trade agreement among the three nations established in the 1990s.
Experts warn that the recently implemented tariffs may inflict severe short-term damage on Canada’s economy, potentially resulting in increased costs for American consumers.Tariffs play a pivotal role in shaping Trump’s economic agenda. He views them as a means to stimulate the US economy, safeguard employment, and increase tax revenue.
Prime Minister Trudeau has announced that Canada will respond to the newly imposed tariffs with a strategy that is both “forceful” and “immediate.”On Friday, Trump announced that Canadian oil would face reduced tariffs of 10%, set to take effect on February 18.
The president intended to impose tariffs on the European Union, asserting that the bloc has not treated the United States favorably.
