Canada Braces for Trade War as Carney Hints at Full Retaliation Against 50% US Tariffs

Mark Carney, the former Bank of Canada governor and current UN special envoy for climate action, warned on Tuesday that Canada is prepared to use every available tool if the United States follows through on its threat to impose 50% tariffs on Canadian goods. Speaking at a trade conference in Toronto, Carney said 'everything's on the table' in response, signaling potential countermeasures that could include tariffs on US imports, export restrictions on critical minerals, or even a renegotiation of trade agreements. The threat comes as the US administration alleges Canadian trade practices harm American industries, though officials have not specified which sectors would be targeted. The proposed 50% tariff would far exceed current rates on Canadian steel and aluminum, which already stand at 25%. Economists warn such a move could disrupt supply chains, raise consumer prices in both countries, and damage the close economic relationship. Carney, while not in government, carries significant weight as a former central banker and has been an informal advisor on trade policy. The Canadian government has not yet issued an official response, but Carney's comments reflect growing frustration in Ottawa over what officials see as unfair treatment. The potential tariffs could affect key exports such as lumber, dairy, and automobiles, impacting hundreds of thousands of jobs. Business leaders are urging both sides to return to negotiations, but the tone from Carney suggests Canada is ready for a fight.