Mark Carney, the frontrunner for the next Canadian prime minister, has stated that Canada is “going to stand up to a bully” following US President Donald Trump’s announcement of 25% tariffs on Canada.
In an exclusive interview with BBC Newsnight, Carney, 59, stated that Canada will “match dollar for dollar the US tariffs.”.
In addition to imposing a 25% tax on Canadian imports on Saturday, the White House imposed tariffs of 25% on Mexico and 10% on China.
Carney, a former governor of the Bank of Canada and the Bank of England, launched his candidacy for leader of Canada’s ruling Liberal Party in January.
He is now one of five candidates vying to succeed Prime Minister Justin Trudeau, with the most support among Liberal MPs. The leadership campaign will end on March 9.
The winner will succeed Trudeau, who announced his resignation in January after nine years in power, as both prime minister and party leader.
Canada is thus compelled to have a federal election to install a new government on or before October 20, with the Liberal Party now lagging their Conservative counterparts in surveys.
Carney told Newsnight that “President Trump probably thinks Canada will cave in” in response to the tariff decision.
“But we are going to stand up to a bully; we’re not going to back down,” he said.
“We’re united, and we will retaliate,” he added.
The former Bank of England governor said the tariffs are “going to damage the US’s reputation around the world.”
“They’re going to hit growth. They’re going to move up inflation. They’re going to raise interest rates,” he said.
He added that it’s the “second time” in less than a decade that the US has “in effect, ripped up a trade agreement with its closest trading partner.”.
The US-Mexico-Canada Accord (UCMCA) went into effect in 2020, near the end of Donald Trump’s first term. It was essentially an upgrade to NAFTA, the three countries’ 1990s-era accord.
Economists have stated that the newly imposed tariffs might have a catastrophic immediate impact on the Canadian economy, as well as raise costs for Americans.
Tariffs are a key component of Trump’s economic program. He sees them as a method to stimulate the US economy, protect jobs, and increase tax income.
Outgoing Prime Minister Justin Trudeau has stated that Canada’s response to the additional tariffs will be “forceful” and “immediate.”.
On Friday, Trump said that Canadian oil will see 10% reduced tariffs, which would go into effect later, on February 18.
The president also stated that he intends to put taxes on the European Union in the future, claiming that the bloc has not treated the United States fairly.
