Canada: "The long-standing relationship is over... Preparing for the most impactful retaliation against the US"

Source
Korea Economic Daily

Summary

  • Canada has announced that it is preparing retaliatory measures against the US regarding their trade relations.
  • Canada plans to maximize the impact on the US while minimizing the impact on itself.
  • Canada is predicted to see a rise in the Liberal Party ahead of next month's early general election.

Canada has strongly opposed the Trump administration's decision to impose a 25% tariff on imported cars. Canadian Prime Minister Mark Carney declared, "The relationship with the United States is now over," and announced plans to prepare retaliatory measures. Canada is highly dependent on the United States, with 75% of its total exports going to the US.

○"Cannot return to the past"

According to foreign media on the 27th (local time), Prime Minister Carney emphasized at a press conference after a special cabinet committee meeting on the US government's tariff response, "The existing relationship with the US, based on economic integration and close security and military cooperation, is over. It is clear that the US is no longer a reliable partner. We may be able to restore some trust through comprehensive negotiations, but we cannot return to the past."

He added, "We will take retaliatory measures that have the maximum impact on the US and the minimum impact on Canada," and "The time will come to broadly renegotiate our security and trade relations." The Financial Times analyzed that Prime Minister Carney is questioning the United States-Mexico-Canada Agreement (USMCA) signed during Trump's first term.

Prime Minister Carney is expected to present a comprehensive response after the outline of the reciprocal tariffs announced by President Trump on April 2 becomes clear. Prime Minister Carney explained, "It is meaningless to respond to each of the series of measures that the US is introducing at a relatively fast pace," and "We will know more in a week and respond then." He also pointed out that Trump's tariff measures will eventually harm American workers and consumers.

○Ahead of a call with Trump... Emphasizing 'respect for sovereignty'

According to the Financial Times (FT), Prime Minister Carney is expected to have a call with President Trump within a day or two. He plans to mention respect for Canadian sovereignty during the call with President Trump. President Trump is threatening to "annex Canada as the 51st state of the US," while also stoking anti-American sentiment within Canada with tariff pressures. Prime Minister Carney said, "Asking for respect for our sovereignty is not a big demand from our perspective, but it seems to be a big issue for him," and "Therefore, such respect must be there."

Prime Minister Carney took office as Prime Minister after succeeding Justin Trudeau as the leader of the ruling Liberal Party on the 15th. Canada will hold an early general election on the 28th of next month. Although the opposition Conservative Party was expected to gain strength in the next general election due to former Prime Minister Trudeau's failure to properly address inflation and immigrant influx, the atmosphere has changed with President Trump's tariff threats and Prime Minister Carney's rising approval ratings.

According to the poll tracker compiled by CBC News, the Liberal Party's approval rating was 40.2% as of the 26th, ahead of the Conservative Party (37.3%). CBC News predicted that the probability of the Liberal Party securing a majority of seats is 69%, while the probability for the Conservative Party is 1%. Reuters reported, "Recent poll results suggest that Prime Minister Carney will achieve an overwhelming victory in this general election."

Reporter Han Gyeong-je

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Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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