Canada's PM warns all options on table if US tariff talks fail

Canadian Prime Minister Mark Carney said all possible responses remain on the table if negotiations with the United States break down over President Donald Trump's threatened 50 percent tariffs on Canadian goods.

Speaking to reporters after a premiers' conference in Charlottetown, Prince Edward Island, on Thursday, Carney said "all options are on the table" if the two countries fail to reach an agreement, according to Bloomberg.

However, he declined to specify what retaliatory measures Canada would take if the US tariffs actually took effect.

Carney said negotiators from both sides are currently engaged in talks covering all existing tariffs and trade measures.

Asked whether Trump's tariff threat was a pressure tactic to force a deal or a signal of genuine intent, Carney said: "Both."

He added that most US trade negotiations have come with deadlines, and those deadlines have typically been accompanied by very high tariffs — suggesting he views the current move as part of a broader negotiating strategy.

Trump earlier announced plans to impose 50 percent tariffs on select Canadian products — including beer, hockey equipment, packaging materials and electrical equipment — citing Section 338 of the Smoot-Hawley Tariff Act of 1930, enacted during the Great Depression.

The tariffs are set to take effect Aug. 19 and are estimated to affect about 5 percent of Canada's goods exports to the US.

Canada rolled back most of its retaliatory tariffs on US products last September but has kept duties on some items, including steel and automobiles. Several provincial governments have also maintained bans on US alcohol sales at government-run liquor stores.

The Trump administration has cited those measures as among the justifications for the 50 percent tariffs, demanding that Canada further open its markets and dismantle trade barriers.

The two countries are expected to continue last-minute negotiations ahead of the Aug. 19 deadline, but a failure to reach a deal risks reigniting trade tensions across North America.