Canada's Carney Hits Back at US Commerce Secretary, Vows to Defend Interests and Resume Talks
Canadian Prime Minister Mark Carney said Thursday his government is ready to sign a mutually beneficial trade deal with the US but demands stability and credibility. He rejected US Commerce Secretary Howard Lutnick's claims that Canada abandoned talks for domestic political reasons, and welcomed Washington's softened stance. The remarks come after the US imposed 50% tariffs on about $20 billion of Canadian goods, breaking negotiations. Canada will retaliate with equivalent tariffs next week.
Canadian Prime Minister Mark Carney said Thursday that his government is prepared to sign a trade agreement with the United States that benefits both countries, but any deal must have stability and credibility. Speaking at a news conference in Thunder Bay, Ontario, Carney said that as long as an agreement serves the interests of Canadian workers, families, and businesses, it will equally serve those of American workers, families, businesses, and consumers. He stressed that Canada wants clear assurances that the agreed tariffs on steel, aluminum, and autos will not be arbitrarily adjusted.
Carney also dismissed recent remarks by US Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent suggesting that Canada had walked away from a trade deal due to domestic political considerations. He noted that appointed, non-elected members of the US cabinet are not experts on Canadian politics. Carney pointed out that Washington's position had softened recently, and until the talks broke down last month, the US had insisted on its own terms across several issues, adopting a "my way or the highway" attitude. Now that the US has dropped those demands, Carney welcomed the change.
US President Donald Trump responded on social media, saying that for Canadian politicians, treating Trump as an "enemy" is fine until their economy collapses. Trump warned that if Canada continues this approach, its economy will collapse, and described it as the worst situation any Canadian politician could face.
The US-Canada trade talks collapsed last month, with both sides failing to reach an agreement before Trump's August 22 deadline. Canada has adopted "reciprocal" retaliation measures, imposing equivalent tariffs on US goods, which will take effect next week. Both sides have accused each other of making unreasonable demands at the last minute. Lutnick previously claimed that Canada tried to expand tariff exemptions for medium- and heavy-duty trucks hours before the deadline, while Carney accused the US of backtracking on the truck issue and denied Washington's claim that Canada's French-language requirements were an obstacle to negotiations.
Why this event matters
The event has a measured impact on 4 industrys. The strongest current signal is negative for Base Metals, with intensity 50/100 and 60% confidence over a short term horizon.
Base Metals
- Direction
- negative
- Intensity
- 50
- Confidence
- 60%
- Horizon
- Short term
Steelmaking
- Direction
- negative
- Intensity
- 50
- Confidence
- 60%
- Horizon
- Short term
Auto Parts
- Direction
- negative
- Intensity
- 40
- Confidence
- 55%
- Horizon
- Short term
New Energy Vehicles
- Direction
- negative
- Intensity
- 40
- Confidence
- 55%
- Horizon
- Short term
Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.