Canada will “stand up to bully” after US tariff announcement, says PM contender Carney

Trudeau vowed that Canada’s response to new tariffs will be “forceful” and “immediate”

Web Desk

01 Feb, 2025

World

Former Bank of Canada and Bank of England governor Mark Carney gestures on the day he announces that he is running to replace Prime Minister Justin Trudeau as leader of the ruling Liberal Party, in Edmonton, Alberta, Canada January 16, 2025. Reuters

The leading candidate for the next Canadian prime minister, Mark Carney, has declared that Canada will “stand up to a bully” following US President Donald Trump’s announcement of a 25% tariff on Canadian goods.

In an exclusive interview with BBC Newsnight, the 59-year-old Carney stated that Canada will “match dollar for dollar the US tariffs.”

In response to the tariff announcement, Carney told Newsnight that “President Trump probably thinks Canada will cave in”.

“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.”

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.

Carney remarked that this is the “second time” in less than a decade that the US has effectively “ripped up a trade agreement” with its closest trading partner.

Outgoing Prime Minister Justin Trudeau has vowed that Canada’s response to the new tariffs will be “forceful” and “immediate.”

On Friday, President Trump announced that Canadian oil would face reduced tariffs of 10%, set to take effect on February 18. He also indicated plans to impose tariffs on the European Union in the future, citing unfavorable treatment of the US by the bloc.

In addition to the tariffs on Canada, the White House also revealed a 25% tariff on imports from Mexico and a 10% tariff on goods from China.

Carney launched his campaign for leadership of Canada’s governing Liberal Party in January, previously served as the governor of both the Bank of Canada and the Bank of England.

Carney is one of five candidates vying to succeed Prime Minister Trudeau, and he has garnered the largest support among Liberal MPs thus far. The leadership contest is set to conclude on March 9.

The new leader will take over from Trudeau, who announced his intention to resign in January after nine years in office. Following this leadership change, Canada must hold a federal election to establish a new government by October 20, with the Liberal Party currently trailing behind their Conservative rivals in the polls.

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