Carney Offers Muted Response as Trump Vows Major Tariff Hike on Foreign Goods

Canadian Prime Minister Mark Carney offered a restrained response Friday to U.S. President Donald Trump’s renewed pledge to raise tariffs on Canadian goods, signaling that Ottawa remains open to dialogue despite the escalating trade dispute between the two countries.

Speaking to reporters in Kuala Lumpur, where he is attending the Association of Southeast Asian Nations (ASEAN) summit, Carney said that Canada is willing to resume trade talks with Washington at any time to ease tensions.

“Canada stands ready to build on the progress that we had been making in our negotiations or discussions with our American counterparts,” Carney said. His short but pointed remarks came just hours after Trump doubled down on his plan to impose another round of tariff hikes on Canadian exports, citing what he described as “unfair trade practices” and “continued lack of cooperation” from Ottawa.

The tariff threat marks the latest chapter in the increasingly strained relationship between the neighboring allies, following months of back-and-forth disputes over trade, energy exports, and national security cooperation. Trump has claimed that Canada’s trade policies disadvantage American workers, while Canadian officials argue that Washington is using tariffs as a political weapon rather than a legitimate economic tool.

Under Trump’s proposal, tariffs on Canadian goods particularly in key sectors such as automotive parts, aluminum, and lumber could rise from 25 percent to as high as 35 percent. Economic analysts warn that the move could have severe ripple effects for industries on both sides of the border, given the deep integration of North American supply chains.

Carney, a former Bank of England governor turned prime minister, has so far adopted a cautious approach toward Trump’s aggressive trade stance. His government has focused on maintaining diplomatic channels and avoiding retaliatory measures that could further destabilize cross-border trade.

A senior official in Carney’s office, speaking on background, said that Canada’s goal remains to de-escalate the situation through diplomacy, not confrontation. “The Prime Minister believes constructive dialogue serves both our countries better than tit-for-tat trade actions,” the official said.

Trump’s new tariff comments were made earlier this week during a campaign-style rally in Michigan, where he framed the issue as part of his administration’s broader plan to protect American manufacturing and reduce dependency on foreign goods. He accused Canada of “cheating the system” and said the tariff hikes were necessary to “restore fairness.”

The U.S. currently remains Canada’s largest trading partner, accounting for roughly 75 percent of Canadian exports. Any further increase in tariffs could strain industries ranging from agriculture to energy, where both countries rely heavily on cross-border trade.

While Carney avoided directly criticizing Trump, his measured tone suggested frustration. Canadian officials privately acknowledge that negotiations have stalled since Washington began tying trade concessions to unrelated issues, such as drug enforcement and energy cooperation.

International observers at the ASEAN summit noted that Carney’s subdued response was likely deliberate, aimed at portraying Canada as the more stable actor in a volatile trade climate. “He’s sending a message that Canada will not be baited into an economic war,” said a trade analyst from Singapore’s National University.

Back in Ottawa, opposition lawmakers urged Carney to take a firmer stance, with some calling for retaliatory tariffs or complaints to the World Trade Organization (WTO). However, Carney’s allies argue that restraint remains the wiser course, especially as global markets react nervously to Trump’s unpredictable trade policies.

As of Friday evening, the White House had not responded to Carney’s remarks. Trump’s trade advisers are reportedly preparing a detailed list of products that could face increased tariffs within the coming weeks.

For now, Carney’s message remains clear: Canada is keeping the door open for talks even as tensions rise.

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