Canadian PM calls new US tariffs an attack, vows retaliation

Canadian Prime Minister Mark Carney said the United States 'attacked' Canada by imposing 50 percent tariffs on $20 billion of Canadian goods, calling the terms unfair and questioning the reliability of any deal. The levies, authorized under Section 338, bypass USMCA exemptions and apply to products like dairy, wine, and furniture. Carney pledged a dollar-for-dollar response and said the bilateral relationship has fundamentally changed.

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The Section 338 authority invoked here dates to 1930 and has rarely been used in recent decades, making this application notable. The tariffs target specific sectors—dairy, wine, and furniture—and override the USMCA framework that has governed North American trade since July 2020, when it replaced NAFTA. The U.S. declined to sign a 16-year renewal during the 2026 review period unless Canada and Mexico offered concessions.

Carney brings unusual economic credentials to the dispute, having previously led both the Bank of Canada and the Bank of England. His government signaled retaliation plans on Friday, pledging matching dollar amounts. Trump's social media post framed Canada's position as seeking state-like benefits without