Canada’s prime minister: Reducing dependence on the US will come at a cost

Canada has begun imposing retaliatory tariffs on US goods, and Prime Minister Mark Carney has warned that reducing the country’s dependence on its southern neighbor will not be painless.

“Everything we need to change course and thrive is available to us,” Carney said. “Such a shift will come at a cost. Action always costs. But that cost is not even comparable with what we would pay if we stood still.”

The tariffs, which took effect Tuesday, are set at 15%, 25% and 50%. They cover C$27.6 billion, or US$20 billion, in imports from the United States, including steel and aluminum products and dairy goods such as cheese. Canada removed some seafood products from its original list.

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Everything we need to change course and thrive is available to us.

The Canadian measures came several weeks after US President Donald Trump imposed 50% tariffs on Canadian products of a similar value. Washington said its action responded to “discriminatory treatment” of US alcohol, automobile and dairy industries.

The US tariffs apply to products including hockey sticks and cement and affect about 5.5% of Canada’s exports to the United States. Carney’s warning came hours after Canada’s countermeasures took effect, framing the trade response as part of a broader effort to reduce economic reliance on the US.

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Such a shift will come at a cost. Action always costs. But that cost is not even comparable with what we would pay if we stood still.