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Prime Minister Mark Carney says he’s spoken to U.S. President Donald Trump after Monday’s tariffs announcement and the two leaders have agreed to ramp up trade discussions in the wake of the latest threat from our southern neighbours.
“I spoke with President Trump earlier this morning. We agreed to intensify negotiations in the coming weeks and the team and myself look forward to doing that,” Carney said.
The prime minister said that intensification will happen “right away” but he did not provide insight into the specifics of how his government will respond.
“We will look at all options in terms of how we would respond if [the new tariffs] do come into effect. That’s part of what we will be discussing with premiers,” he said.
WATCH | Carney: Trump agreed to ‘intensify’ trade talks:
Carney: Trump agreed to ‘intensify’ trade talks
Prime Minister Mark Carney said U.S. President Donald Trump agreed to ‘intensify’ trade talks after ramping up his trade war against Canada. Carney’s comments come as Trump announced a 50 per cent tariff on a wide range of Canadian exports, in retaliation for what he calls ‘unequal treatment’ of U.S. dairy, alcohol and automotive exports.
Speaking in the Oval Office on Tuesday, Trump said he loves Canada and its people but it has been “very, very tough” on the U.S. for decades.
“I mean, in all fairness to them, they need us to survive. Without us, there’s no way they can survive,” Trump said. “They’ve been very, very tough over a period of the last 50 years, actually.”
Conservative Leader Pierre Poilievre issued a statement describing the new tariffs as “unjustified and wrong” and offered to work with the federal government.
“All parties must work together to prevent the tariffs from happening. Conservatives are here to help and fight for Canada,” Poilievre said.
Should Canada hold firm on its current trade policies, including the provincial bans on U.S. alcohol, even if the tariffs go ahead? Join the conversation below or click here if you’re on the app.
On Monday evening, Trump announced that his administration will be imposing tariffs of 50 per cent on a wide range of Canadian exports in 30 days’ time.
The new tariffs are being imposed in response to what a senior administration official described as Canada’s retaliation against U.S. trade policy and its discrimination against U.S. motor vehicles, dairy and alcohol.
The White House provided details, in three presidential proclamations, for why each of those trade irritants are considered discriminatory to the U.S.
The alcohol irritant
The alcohol boycotts, where every province save Alberta and Saskatchewan has banned the sale of U.S. beer, wine and spirits, were imposed after Trump slapped earlier tariffs on the auto sector, steel, aluminum, softwood lumber and other products.
According to U.S. Census Bureau figures, the alcohol bans have resulted in a $360-million US drop in wine exports to Canada in 2025 from the previous year, along with a $150-million US drop in spirit exports.
“The Canadian provinces and territories have not instituted or maintained similar bans or restrictions on any other country since March 2025, thereby benefitting other countries at the expense of the United States,” the proclamation on alcohol said.
WATCH | Carney says U.S. booze bans should only end as part of an overall trade deal :
Carney says U.S. booze bans should only end as part of an overall trade deal
Prime Minister Mark Carney says the decision to either keep or change bans on American alcohol in Canadian liquor stores will be ‘taken by the provinces themselves.’ But he said his opinion is those changes should only be made ‘as part of an overall agreement.’
Carney said the decision to remove U.S. booze from Canadian shelves was taken by the provinces in retaliation for the U.S. tariffs on key industries in their provinces, as well as threats to Canada’s sovereignty in general.
“The decision to change that, first and foremost, will be taken by the provinces themselves, each individually, and should only be taken, in my view, as part of an overall agreement. And that’s what we’ll work to accomplish,” he said.
While Saskatchewan Premier Scott Moe said he expects the provinces with alcohol bans will soon relent, B.C. Premier David Eby said Tuesday that “there is not a chance in hell that U.S. alcohol is going back on the shelf” in his province.
“The one way to embolden a bully is to capitulate. And I don’t think we should embolden Mr. Trump, who clearly is a bully,” he said.
An overall agreement or no agreement
Carney said his government is pursuing an overall trade agreement with the Trump administration rather than settling trade disputes on the CUSMA file while leaving critical sectors like steel, aluminum, lumber and the auto industry saddled with tariffs.
“In our view and the view of [Mexican President Claudia Sheinbaum] and the Mexican authorities, there are solutions that evolve CUSMA so that those sectors are globally competitive to the benefit of workers,” Carney said.
WATCH | B.C. premier says U.S. booze staying off shelves:
Not a chance in hell’ U.S. booze going back on B.C. shelves: Eby
B.C. Premier David Eby, reacting Tuesday to the latest U.S. tariff announcement, said Canada’s ‘integrity is intact’ and reiterated his unwillingness to return U.S. alcohol to shelves after President Donald Trump’s latest move to hike levies on Canadian products.
In a statement issued Monday evening, Carney said the U.S. was the first to impose tariffs in violation of CUSMA and “Canada, as is its right, has merely matched those measures.”
He said that “provinces, territories and Canadians from coast to coast to coast have stood together” in response to those tariffs “and threats to Canadian sovereignty.”
U.S. Trade Representative Jamieson Greer told CNBC that Carney’s statement was “firm but moderate” and talks are ongoing.
“I’m going to keep talking to my counterparts in Canada,” Greer said. “They haven’t cut off talks. So we’re going to keep discussing with them.”