Trump also moved to shut Canadian products out of large, long-term US government contracts and directed the US General Services Administration to declare Canadian products ineligible for those contracts until Canada allows \u201cfull and fair reciprocity\u2033 for American products.<\/p>\n
Canadian Prime Minister Mark Carney said Canada\u2019s strategy was about becoming more independent and vowed to speed those efforts<\/a>. \u201cIt\u2019s about ensuring that no country can hold us hostage. And that we can live how we want to live,” he said.<\/p>\n The rupture has upended one of the world\u2019s closest relationships. On August 22, the US imposed 50% tariffs on about 5% of Canadian imports, charging that Canada had unfairly treated the American dairy, alcoholic beverage and auto industries.<\/p>\n The US and Canada have long sparred over trade, particularly Canada\u2019s protected dairy market and its subsidies for producers of softwood lumber. But they remained friends and staunch allies.<\/p>\n Under Trump, US-Canada relations have deteriorated rapidly<\/a>. In addition to imposing tariffs on Canadian products, Trump has repeatedly made inflammatory comments about making Canada the 51st US state. Carney came to power in a come-from-behind political victory last year by promising to stand up to him.<\/p>\n Some Canadian provinces have banned the sale of US alcoholic products \u2014 a move that prompted the retaliatory US ban on Tuesday on various Canadian wines and spirits. Also subject to the ban are some motorcycles and mopeds, dairy products, including whey, and various types of molasses.<\/p>\n Canada is exploring ties with the European Union that could stop just short of membership, a Canadian official familiar with the discussions said.<\/p>\n Canadian Prime Minister Mark Carney meets with US President Donald Trump at the White House. (Source: Associated Press)<\/p>\n Options could include expanding existing agreements, negotiating a new treaty or creating other forms of cooperation. The official said Canada is already consulting provinces, territories and labour groups about what a deeper relationship with the EU could look like, but no model has been chosen.<\/p>\n The official spoke on condition of anonymity because they were not authorised to discuss the talks publicly.<\/p>\n Carney is due in Strasbourg, France, next week, where he will attend European Commission President Ursula von der Leyen\u2019s State of the European Union address on September 16 and address the European Parliament the following day.<\/p>\n Canada looks beyond the US<\/p>\n Carney acknowledged the trade actions would cause short-term pain but said they would push Canada to move faster on investment, infrastructure and trade diversification.<\/p>\n \u201cIt was easy business, but it meant we relied too much on one economic partner,\u201d he said. \u201cThat time is over.\u201d<\/p>\n More than 70% of Canadian exports still go to the United States, underscoring the scale of Carney’s push to diversify trade. He said Canada\u2019s exports to other countries are rising sharply and are on track to double over the next decade.<\/p>\n Canada retaliates as Trump responds<\/p>\n Canadian Prime Minister Mark Carney meets with US President Donald Trump at the White House. (Source: Associated Press)<\/p>\n Carney defended the retaliation, saying Canada could not let American goods enter tariff-free while Canadian companies face US tariffs.<\/p>\n Canada was not seeking to escalate the confrontation, he said, but the tariffs were necessary to protect Canadian workers.<\/p>\n Carney said the larger problem was what Washington had sought in the failed negotiations.<\/p>\n \u201cThe most fundamental issue is that the cumulative US demands revealed that they wanted us to become even more reliant on them, not less,\u201d he said. \u201cIn too many areas, they wanted dependency, not a true economic partnership.\u201d<\/p>\n The prime minister said Washington sought limits on French-language and cultural protections, influence over future trade deals and terms that would weaken the auto, steel and forestry sectors.<\/p>\n How the trade war ends could carry consequences far beyond Canada, testing whether a smaller US ally can resist Trump\u2019s economic pressure without being forced to yield.<\/p>\n Earlier on Tuesday, a Canadian official said Ottawa did not intend to change course regardless of whether Trump responded with nothing or what the official called a \u201cnuclear response\u201d. The government\u2019s strategy will remain focused on building more at home and diversifying trade abroad, the official said.<\/p>\n The tariffs hit hundreds of American products, including steel, aluminium, cheese, appliances, clothing, cosmetics and farm equipment, at rates of 15%, 25% or 50%. They cover about US$20 billion in American goods, roughly 6% of the US$333.6 billion the United States exported to Canada last year.<\/p>\n Since Canada-US trade talks collapsed on August 21, Trump and his administration have imposed additional tariffs and issued a series of threats<\/a> and attacks portraying Canada as weak and dependent.<\/p>\n![\"Canadian](\"https:\/\/www.newsbeep.com\/nz\/wp-content\/uploads\/2026\/09\/canadian-prime-minister-mark-carney-meets-with-us-president-FXYKEP7PIVDPLLXMHJB6EUP7TE.jpg\")
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