Carney Tells Canadians: Retaliation Against U.S. Tariffs Was Unavoidable

Hours after his government imposed retaliatory tariffs on $20 billion of imports from the United States, Prime Minister Mark Carney said on Tuesday that Canada's response had been unavoidable. 'I don't believe in escalating the conflict; that's not constructive,' Mr. Carney said in a recorded video address to Canadians that was posted online. 'But our tariffs are necessary to protect our workers, protect our companies and our communities. We can't let American goods into Canada tariff free while they charge our companies to export them.' The Canadian tariffs of 15, 25 and 50 percent depending on the product, which came into effect just after midnight on Tuesday, were Mr. Carney's response to tariffs of up to 50 percent imposed by President Trump after the end of trade talks between the two countries last month. They targeted roughly the same level of Canadian exports, $20 billion. The new Canadian levies also boosted counter-tariffs that Canada adopted last year. Mr. Trump has threatened repeatedly to respond to any further retaliation. On Monday, he said that the United States might block the purchase of business jets made by the Montreal-based manufacturer Bombardier unless the company shifted production of its aircraft to the United States. The consensus among economists is that because of Canada's comparatively small economic size, its tariffs, which apply to goods like rolls of aluminum foil and diesel locomotives, will have relatively little effect on the American economy. But they do have the potential to inflict pain on some businesses and regions. Canadian officials say they picked many of the items now under tariffs because they are produced in states that backed Mr. Trump. With retaliation, Mr. Carney appears to be responding to two political forces. Polls show that Canadians overwhelming want him to strike back. At the same time, not doing so might be taken by the Trump White House as a sign of weakness. Want all of The Times? Subscribe.