Mark Carney, a top contender to become Canada’s next prime minister, has firmly rejected the new tariffs imposed by the United States and pledged to take strong retaliatory action. In an exclusive interview with BBC Newsnight, Carney, 59, asserted that Canada would not back down from President Donald Trump’s 25% tariff on Canadian imports. “We will match dollar for dollar,” Carney declared, emphasizing Canada’s commitment to standing firm in the face of economic pressures.
Carney, who previously served as governor of both the Bank of Canada and the Bank of England, is currently one of five candidates vying for leadership of Canada’s Liberal Party. The leadership race, set to conclude on March 9, will determine the next prime minister, with a federal election scheduled by October 20. At present, the Liberal Party trails the Conservatives in the polls.
In his comments, Carney criticized Trump’s tariff policy, asserting that the US president likely expected Canada to yield. “We will stand up to a bully. We’re united, and we will retaliate,” Carney stated. He further warned that these tariffs would damage the US’s global standing, impede economic growth, increase inflation, and push interest rates higher, creating a ripple effect on both sides of the border.
The tariffs are the latest chapter in a long history of trade tensions between the two countries. Carney noted that this is the second time in recent years that the US has unilaterally altered a trade agreement with Canada. In 2020, the US-Mexico-Canada Agreement (USMCA) replaced the North American Free Trade Agreement (NAFTA), a move that has had significant ramifications for both Canadian and American economies. Economists now fear that the new tariffs could have a profound impact on Canada’s economy and raise prices for American consumers.
In response to the tariff announcement, Prime Minister Justin Trudeau has vowed to deliver a “forceful” and “immediate” counter-response. Meanwhile, Trump has indicated that the tariffs will not end with Canada, announcing additional measures including a 10% tariff on Canadian oil, set to take effect on February 18. Trump has also signaled that further tariffs on the European Union may be forthcoming, accusing the bloc of unfair treatment of the US.
Carney’s resolute position on the tariff issue has made him a prominent figure in the Liberal Party’s leadership race. His tough stance has resonated with many Liberal MPs, positioning him as a decisive leader with the potential to challenge Trump’s policies head-on.
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