Canadian PM Carney says new US tariffs are 'designed to hurt us and divide us'
Source: Euronews โ
Canadian Prime Minister Mark Carney has hit out at new US tariffs on Canada, saying they were "designed to hurt us and divide us" after talks between Ottawa and Washington broke down on Friday. Sharing further details on why Canada walked away from what he called a "bad deal," Carney said: "We cannot accept what they've offered, and we will not give what they've asked." New 50% duties impacting around $20 billion worth of Canadian goods took effect on Saturday after the two countries failed to come to an agreement on a trade deal, with both sides accusing each other of trying to implement last-minute changes. In a statement on Friday, Carney labelled alleged late changes to the terms of the deal proposed by the US "unfair" and "uneconomic" and said they "called into question the reliability of any deal." He also warned that Ottawa would match US tariffs "dollar for dollar to protect our workers and businesses." "Our response will be concentrated in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics," Carney said in a speech on Saturday. The Office of the United States Trade Representative has described it as a "missed opportunity" for Canada, which it said was maintaining a "prolonged retaliation" against the US.
"Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days," it added in a statement posted on social media. The breakdown in talks came despite optimism from US President Donald Trump that a deal could be reached. Trump had postponed the initial planned start date of the tariffs from Wednesday as an agreement appeared near. Trump, who has repeatedly suggested that Canada should become the US' "51st state," said early on Sunday that Ottawa wanted "the benefits of being a State, without being one." "They have also charged our great farmers, for many years, massive amounts of Tariffs.
No more!!!," he added. Trump has pursued an aggressive tariff policy since his return to the White House in January 2025, ramping up levies on partners across the world. The administration argues that tariffs will boost US manufacturing and encourage domestic job growth while addressing what it sees as unfair trade rates. Critics, however, say increasing duties are making life more expensive for American consumers and businesses while fostering widespread uncertainty among companies planning investments and supply chains.
โก Effects Interpreter
๐World Economymedium impact
What this means for you
- โถRipples from this can reach factories and ports far away.
- โถA ripple in one major economy can nudge sentiment in several others.
๐๏ธLocal Economymedium impact
What this means for you
- โถYour council tax and utility bills can indirectly track big economic swings.
- โถLocal firms often watch national data before setting their own prices.
๐ฆRates & Bankslow impact
What this means for you
- โถFixed and variable borrowers alike may want to keep half an eye on this.
- โถAny move in rates would probably come down the road, not overnight.
โค๏ธHealthlow impact
What this means for you
- โถLocal health services could get busier depending on how things develop.
- โถTaking a break from the headlines can do more good than scrolling on.
๐ทWealthmedium impact
What this means for you
- โถYour household's overall financial health matters more than any one day's numbers.
- โถA calm head usually serves savers better than a short reaction.
๐ Housingmedium impact
What this means for you
- โถLocal surveyors typically note that sentiment shifts before prices actually do.
- โถHousing supply and demand rarely turn on a single piece of news.
๐ Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone โ the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone โ the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone โ the real impact in the UAE depends more on local healthcare capacity than the figures above.