The federal government isn’t yet threatening counter tariffs, but says it is still looking to negotiate a trade deal with the U.S. after President Donald Trump threatened tariffs of 35 per cent on non-CUSMA compliant goods effective Aug.

Prime Minister Mark Carney said Thursday the Canadian government will "steadfastly" defend workers and businesses following the latest trade threats by U.S. President Donald Trump. In a late night post on social media,

Canada has been a key trading partner and ally of the US for decades. But along with Mexico, it now wears a bull’s eye for Trump in his second stint in the White House as he tries to reorder the global system of largely free trade by slapping tariffs on friends and foes alike to address what he calls unfair trading practices.

Trump's tariffs could shrink Canada's economy by 2.1% in real terms, says The Budget Lab of Yale. Canada faces a 35% tariff threat by August 1, on top of tariffs on potash, steel, and automobiles. The US ranks second in terms of economic damage due to tariffs,