'Was Easy Business': Canada To Look Beyond US As Trump's Trade War Sours Ties

As Canadian retaliatory tariffs kicked in on Tuesday, Prime Minister Mark Carney indicated he does not want to escalate the trade conflict. 'I don't believe in escalating the conflict, that's not constructive, but our tariffs are necessary to protect our workers, protect our companies and our communities,' Carney said in a video posted on social media. 'We can't let American goods into Canada tariff-free while they charge our companies to export.' Carney's remarks was in contrast to Canada's worsening relationship with US with its growing ties to countries he described as more reliable. 'For the past year and a half, we have been steering our economy toward trusted partners,' he said. 'It was easy business, but it meant we relied too much on one economic partner,' he said. 'That time is over.' The Canadian government has raised import tax on several US steel items to 50% from 25%, and levied tariffs to a range of consumer goods such as motorcycles, cosmetics, cheese and more at 12:01 a.m. New York time. The tariffs were imposed in response to so-called Section 338 tariffs on $20 billion of Canadian goods, which came into effect August 22. The Section 338 tariffs applies to products even if they are shipped under the North American free trade agreement, are sufficient to virtually halt US imports of those goods, Bloomberg reported. This would include 0.8% of Canada's gross domestic product directly at risk in the short term, cutting long-term GDP by 0.2% relative to the 2024 baseline. The Canadian Prime Minister warned the 'harsh reality' of the US tariffs will hurt some Canadians more than others 'by design.' The Section 338 tariffs specifically targets Ontario, Quebec and British Columbia, the largest provinces that have retaliated against Washington by removing American alcohol from government-run liquor stores. 'This won't be easy, and I won't pretend otherwise. But Canadians have faced difficult stretches before, and what's carried us through has never ever been just one measure,' Carney said, adding that the most 'powerful action' has come from Canadians who have chosen to buy local and travel within the country. Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.