Canada’s incoming Prime Minister, Mark Carney, has made it clear that his government will not back down in the face of American tariffs, promising that Canada will win the ongoing trade war with the United States. Carney, who recently secured the leadership of the Liberal Party with a commanding 85.9% of the vote, asserted in his inaugural speech that the retaliatory tariffs imposed by Ottawa will remain in place until the US treats Canada with “respect.”

The trade dispute between the two North American neighbors escalated in February when US President Donald Trump announced sweeping tariffs: 25% on imports from Canada and Mexico, alongside 10% duties on goods from China. Though initially delayed for a month, the tariffs took effect on March 4. While exemptions were granted to certain automakers and goods covered under the United States-Mexico-Canada Agreement (USMCA), these exemptions are set to expire in April.

Ottawa responded with a strong countermeasure, imposing tariffs on $30 billion worth of American products, with an additional $125 billion in duties scheduled for next month. These measures are designed to target key US industries while minimizing damage to the Canadian economy.

In his victory speech on March 9, Carney took direct aim at Trump’s trade policies, calling them “unjustified” and “an attack on Canadian families.”

“There’s someone who’s trying to weaken our economy. Donald Trump,” Carney declared. “Donald Trump has put unjustified tariffs on what we build, on what we sell, on how we earn a living.”

Carney vowed that his government would keep the counter-tariffs in place until Washington ends its aggressive trade tactics.

“The Canadian government is rightly retaliating with our own tariffs that will have maximum impact in the United States and minimum impact here in Canada. My government will keep our tariffs on until the Americans show us respect,” he stated.

His remarks were met with applause from supporters, many of whom view Carney as a steady hand during economic uncertainty. The new prime minister’s comments also took a swipe at Trump’s past suggestion that Canada should consider becoming the 51st US state.

“Canada never, ever will be part of America in any way, shape, or form,” Carney said defiantly. “We didn’t ask for this fight, but Canadians are always ready when someone else drops the gloves. So, Americans should make no mistake… In trade, as in hockey, Canada will win.”

While Carney’s rhetoric signals a tough stance against Washington, he also cautioned that “this victory will not be easy,” acknowledging the economic pain that both sides may endure before a resolution is reached.

Carney’s rise to power comes after a tumultuous period for the Liberal Party. Former Prime Minister Justin Trudeau resigned in January following plummeting approval ratings due to inflation, a housing crisis, and economic challenges. Trudeau’s resignation prompted a leadership contest in which Carney defeated four other candidates, including former Finance Minister Chrystia Freeland.

Prior to his political career, Carney was widely respected in the financial sector, having served as the Governor of both the Bank of Canada and the Bank of England. He was also an economic adviser to Trudeau, making his transition into politics a natural progression. His economic expertise will be tested as he navigates Canada through the ongoing trade war with its largest trading partner.

Meanwhile, the White House has doubled down on its trade policies, with President Trump confirming that the tariffs on Canada and Mexico will take full effect on April 2. Trump described the temporary delay as “a little bit of a break” before implementing harsher restrictions.

Commerce Secretary Howard Lutnick clarified on NBC’s Meet the Press that tariffs on steel and aluminum imports will begin on Wednesday, with duties on Canadian dairy and lumber following soon after.

Lutnick also emphasized that the restrictions are tied to broader concerns over border security and drug trafficking. He stated that the tariffs will remain in place until Trump is “comfortable” with how Canada and Mexico are handling the flow of fentanyl into the US White House economic adviser Kevin Hassett defended the tariffs, framing them as “a drug war, not a trade war.”

This justification has been met with skepticism in Ottawa. Canadian officials have pointed out that they have taken extensive measures to curb fentanyl trafficking, including collaborating with U.S. authorities on cross-border law enforcement efforts. Carney himself dismissed the White House’s argument as a “transparent excuse” to justify economic aggression.

The trade war has already started to take a toll on industries in both countries. Canadian manufacturers have reported increased costs due to US tariffs on aluminum and steel, while American farmers and exporters are bracing for losses due to Canada’s retaliatory measures.

Economists warn that prolonged tariffs could trigger broader economic instability. Canada is heavily reliant on trade with the US, with nearly 75% of its exports going to its southern neighbor. However, Carney’s government is betting that targeted retaliation will put pressure on key American industries, forcing Washington to reconsider its position.

Despite the escalating conflict, some analysts believe there is room for negotiation. Trade experts suggest that if Trump sees political or economic costs mounting ahead of the 2024 presidential election, he may be willing to strike a deal. However, Carney’s strong stance signals that Canada is prepared for a prolonged standoff if necessary.

With Carney set to be sworn in as prime minister in the coming days, Canada is entering a new phase of its political and economic relationship with the United States. His tough stance on trade signals a shift away from Trudeau’s approach, as he prepares to go head-to-head with Trump in a high-stakes battle that could redefine North American trade.

As the dispute unfolds, all eyes will be on whether Carney’s bold strategy will yield results or if Canada will be forced to seek alternative economic partnerships. What is clear, however, is that Carney has no intention of backing down, and his government is prepared to stand its ground in what he calls a fight for “respect” on the global stage.

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