Canada weighs targeted retaliation as US tariff talks collapse

Canada is considering retaliation against new US tariffs while keeping open the possibility of renewed trade talks, Prime Minister Mark Carney said, according to Bloomberg.

Carney said negotiations exposed US demands that could damage Canada’s steel, aluminum, and auto industries. He said a mutually beneficial deal remains possible if Washington respects Canada’s sovereignty.

Ottawa is weighing a range of responses involving critical minerals, energy, and other exports. Carney acknowledged that dollar-for-dollar retaliation is difficult because the US economy is much larger, making targeted measures more likely.

The collapse of talks has already affected negotiations over autos, metals, lumber, export controls, and digital trade. A renewed agreement would also need to address the future of the US-Mexico-Canada trade framework.