Canada’s once-cozy trade relationship with the U.S. has ended amid President Donald Trump’s tariffs, Canadian Prime Minister Mark Carney said, according to CTV.
"We know that this decades-long process of our ever-closer economic relationship between Canada and the United States has ended, and as a consequence of that, many of our strengths have become our vulnerabilities, particularly in those industries that are most tightly integrated with the United States," Carney told reporters Wednesday on Ottawa’s Parliament Hill while announcing supports for the steel and lumber industries hit hard by U.S. tariffs.
"Last year, more than 75% of our exports went to the United States. 90% of our lumber exports, 90% of our aluminum exports, and 90% of our steel exports, all bound for a single market," he added.
"We must protect our workers and industries who are most exposed to U.S. tariffs."
Ottawa will reduce the quota for steel imports from countries that do not have a free trade agreement with Canada to 20% from 50% of 2024 levels, Carney said.
Countries with an FTA with Canada will see their quotas cut to 75% from 100% of the 2024 level. This does not include the U.S. and Mexico, which are bound by the United States-Canada-Mexico free trade deal.
Canada will also impose a global 25% tariff on targeted imported steel-derivative products and incorporate border measures to combat steel dumping.
The measures are being tightened to open up the domestic for Canadian-produced steel, said a government official.
Trump has imposed 50% tariffs on steel and softwood lumber, long subject to U.S. tariffs, is currently taxed at 45% after the Trump administration’s hike last month.
Carney also said the federal government is offering an extra $356 million in loan guarantees to the softwood lumber industry on top of other measures to encourage homebuilders to use made-in-Canada materials.
Trump cut off trade talks with Canada last month after the Ontario provincial government ran television advertisements in U.S. markets that criticize Trump’s tariffs by citing a speech by former U.S. President Ronald Reagan.
Carney said he’ll be in Washington for the final draw on Dec. 5 for the FIFA World Cup 2026 tournament. He said he’ll speak to Trump then and said he spoke briefly to the president on Tuesday.
"We are ready to re-engage on those talks when the United States wants to re-engage," Carney said.
Newsmax wires contributed to this report.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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