Canadian PM unfazed by Trump's new tariff threat, vows to negotiate only on right terms

Canadian Prime Minister Mark Carney reaffirmed Monday (local time) that protecting Canadian sovereignty and national interests would remain his top priority, amid the collapse of trade talks with the United States and fresh tariff threats from President Donald Trump.

Speaking at a shipbuilding investment event at the Davie Shipyard in Lévis, Quebec, Carney said the goal of trade negotiations with the US had always been to secure the best deal for Canadians — not to reach an agreement at any cost or on any particular timeline. "We could not accept what the United States put on the table, and we could not give them what they demanded," he said.

He said Canada would never accept an attitude at the negotiating table that treated it as a subsidiary of the United States, placed Canadian industries at a disadvantage relative to their American counterparts, or assumed Canadian industries would face growing headwinds over time.

However, he left the door open to future talks. "If the United States comes to the negotiating table first with the right attitude toward our industries and a genuine partnership, then of course we will come to the table as well," he said.

Carney also addressed Trump's announcement that the US would raise tariffs on Canadian automobiles, auto parts and steel to 50 percent starting next year, saying he was "not surprised." He described the move as a direct follow-through on the conditions the US side had put forward during last week's failed negotiations — not a sudden or unexpected measure.

"We will not accept that," he added.

As trade tensions with the United States continued to escalate, the Canadian government announced a major investment plan Monday aimed at strengthening the country's economic self-reliance and infrastructure.

Carney announced that Canada would commit more than C$11 billion to build six new icebreakers — the largest contract in Quebec's history.

The project is intended to replace aging mid- and large-sized icebreakers in the Canadian Coast Guard fleet. All six vessels will be built at the Davie Shipyard in Quebec using domestic materials, including Canadian-made steel. The project is estimated to create about 5,000 jobs during the construction phase alone and contribute roughly C$650 million to GDP each year.

The Canadian government said the investment is part of a "National Shipbuilding Strategy" designed to strengthen the country's economic independence and Arctic security, and to ensure the stability of key trade routes and maritime corridors.

Construction is set to begin in 2027, with the first vessel to be delivered five years later and the full fleet expected to be in service by 2038.