Canada’s incoming PM says tariffs will remain until US commits to free trade

Incoming Canadian Prime Minister Mark Carney has said his government will keep tariffs in place until Americans show respect and commit to free trade after US President Donald Trump threatened historic financial devastation for Canada.

Mr Carney, who will be sworn in as Justin Trudeau’s replacement in the coming days, said Mr Trump’s latest tariffs are an attack on Canadian workers, families, and businesses.

His comments came hours before Ontario Premier Doug Ford said he agreed to remove a threatened surcharge on electricity to the US after a phone call from US Commerce Secretary Howard Lutnick.

“My government will ensure our response has maximum impact in the US and minimal impact here in Canada, while supporting the workers impacted,” Mr Carney said.

He added: “My government will keep our tariffs on until the Americans show us respect and make credible, reliable commitments to free and fair trade.”

Mr Trump said on social media that the increase of the tariffs set to take effect on Wednesday was a response to the price increases that the provincial government of Ontario put on electricity sold to the United States.

The US president condemned the use of electricity “as a bargaining chip and threat”, saying in a separate social media post on Tuesday that Canada “will pay a financial price for this so big that it will be read about in History Books for many years to come!”

Ontario Premier Doug Ford said on Tuesday afternoon that US Commerce Secretary Howard Lutnick called him and Mr Ford agreed to remove the surcharge. He said he was confident that the US president would also stand down on his own plans for 50% tariffs on Canadian steel and aluminium.

“He has to bounce it off the president but I’m pretty confident he will pull back,” Mr Ford said on Mr Trump’s steel and aluminium tariff threat.

“By no means are we just going to roll over. What we are going to do is have a constructive conversation.”

Mr Trump told reporters that he is looking at returning the steel and aluminium tariffs on Canada to 25% and would “probably” do so.

Asked if the United States could face a recession, Mr Trump said: “I don’t see it.”

Mr Trump continued to call for Canada to become part of the United States as a solution, words that have infuriated Canadians.

“The only thing that makes sense is for Canada to become our cherished Fifty First State,” Mr Trump posted on Tuesday. “This would make all Tariffs, and everything else, totally disappear.”

Canadian officials are planning retaliatory tariffs in response to Mr Trump’s specific steel and aluminium tariffs and they are expected to be announced on Wednesday.

Mr Carney is referring to Canada’s initial 30 billion Canadian dollars (£16.2 billion) worth of retaliatory tariffs that have been applied on items such as American orange juice, peanut butter, coffee, appliances, footwear, cosmetics, motorcycles and certain pulp and paper products.

“If we go into a recession it’s self made by one person. It’s called President Trump’s recession,” Mr Ford said. “It shouldn’t be this way. We should be booming, both countries.”

Opposition federal Conservative leader Pierre Poilievre said the tariffs are “yet another betrayal by the president of the long friendship between Canada and the United States” and called for retaliatory tariffs.

“If President Trump is applying 50% tariffs on our steel and aluminium then Canada must hit back with 50% tariffs on all steel and aluminium imported from the United States,” Mr Poilievre said in a statement.

“Our message to the US administration must be clear, do not mistake our kindness for weakness, we are a strong, proud and sovereign country and we will fight back against these attacks against our economy and our workers.”