Canadian Prime Minister Mark Carney cautioned markets that the Canadian government is both ready and willing to start retaliatory trade actions against US President Donald Trump. The White House is set to kick off a wide array of tariffs across the board that will enact sharp economic pain on all of the US's foreign trading partners and constituents at the same time. Governments across the globe are preparing, or have already begun enacting, targeted response tariffs that are already taking a bite out of regional budgets across the US.
During his statements, Canadian PM Carney highlighted that it remains unlikely the US will cave on proposed lumber tariffs specifically against Canada. However, the PM's statements highlighted a particular difficulty that has faced most of the US's trading partners since Donald Trump took up residence in the White House just 66 days ago: the Trump administration has done a terrible job of conveying its own messaging on tariffs, and nobody trying to do business with the US is actually clear on what President Trump wants.
Key highlights
Our response to these latest tariffs is to fight.
We will fight the US tariffs with retaliatory trade actions of our own.
It is clear that the United States is no longer a reliable partner.
It is possible that with comprehensive negotiations, we will be able to restore some trust with the United States.
Trump reached out on Wednesday night to schedule a call.
I will speak to Premiers on Friday as well as business and union leaders to develop a coordinated response to what Trump does on April
Nothing is off the table when it comes to defending our workers and our country.
The road ahead will be long. There is no silver bullet, there is no quick fix.
We will do everything in our power to protect our businesses.
The old relationship we had with the US, based on deepening integration of our economies and tight security and military cooperation, is over.
When Trump threatens us again, we will fight back. We will fight back with everything we have to get the best deal for Canada.
I will speak to Trump in the next day or two.
We have the best deal of a bad deal within what the Americans have proposed on auto tariffs.
We will respond next week when we know what the US is proposing.
It's possible some Canadian cabinet ministers could go to Washington next week for talks.
The US is likely to follow through with lumber tariffs.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD remains offered near the 1.0800 zone
On Monday, EUR/USD remains rangebound around 1.0800, as risk-averse sentiment keeps the US Dollar buoyant amid ongoing tariff concerns, while investors remain wary ahead of "liberation day".
Gold holds near fresh records, rally far from over
Gold surged toward a record-setting $3,150 in the second half of the day as safe-haven flows amid escalating global tariff war fears and US economic concerns weighing on Treasury yields propelled XAU/USD higher.
GBP/USD breaks below 1.2900, daily lows
The selling pressure continues to hurt the risk-associated assets at the beginning of the week and now sends GBP/USD back to the sub-1.2900 region, or daily troughs.
Seven Fundamentals for the Week: “Liberation Day” tariffs and Nonfarm Payrolls to rock markets Premium
United States President Donald Trump is set to announce tariffs in the middle of the week; but reports, rumors, and counter-measures will likely dominate the headline. It is also a busy week on the economic data front, with a full buildup to the Nonfarm Payrolls (NFP) data for March.
US: Trump's 'Liberation day' – What to expect?
Trump has so far enacted tariff changes that have lifted the trade-weighted average tariff rate on all US imports by around 5.5-6.0%-points. While re-rerouting of trade will decrease the effectiveness of tariffs over time, the current level is already close to the highest since the second world war.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.