OTTAWA — Prime Minister Mark Carney is holding virtual meetings with his cabinet and the premiers today, less than a week after U.S. President Donald Trump hit Canada with a baseline 35 per cent tariff.
This latest trade war escalation applies only to goods not covered by the Canada-United States-Mexico agreement on free trade, better known as CUSMA.
The latest levy took effect on Friday after the two countries failed to hit an Aug. 1 deadline to secure a new trade agreement.
Ontario Premier Doug Ford said Wednesday he had a "good conversation" with U.S. Commerce Secretary Howard Lutnick on Tuesday that was "positive." He also said he was frustrated by the impacts of high U.S. tariffs on his province's economy.
Ford warned Trump's "decision to increase tariffs on Canadian goods to 35 per cent is only adding to the uncertainty for businesses and workers."
"You can't have tariffs on one side and not the other. I still stand by what I say — dollar for dollar, tariff for tariff. They understand strength, not weakness, and we should never, ever roll over and be weak," Ford told reporters at a news conference Wednesday in Thornhill, Ont.
Ford said he wants to see more done to stimulate the economy. He called on Ottawa to cut taxes and said the Bank of Canada should drop its interest rate.
"We have to get the governor of the Bank of Canada to lower those damn interest rates from 2.75," he said. "Knock 'em down. Build confidence.
"Let's work together on getting rid of the HST on homebuyers, and not just first (time) ones. Let's stimulate the market and we'll follow suit if the federal government does that."
Ford said he believes the "prime minister is doing everything in his power to get a fair trade deal with the U.S."
Carney told a press conference in B.C. on Tuesday that he has not talked to Trump in recent days, but will speak with him "when it makes sense."
The prime minister added that about 85 per cent of trade with the U.S. remains tariff-free because of CUSMA.
Sector-specific tariffs, like the 50 per cent duty on steel, aluminum and copper, remain in place.
Foreign Affairs Minister Anita Anand and Finance Minister François-Philippe Champagne were in Mexico City on Wednesday for meetings with Mexican officials and businesses on trade.
— With files from Allison Jones in Thornhill, Ont.
This report by The Canadian Press was first published Aug. 6, 2025
David Baxter and Kyle Duggan, The Canadian Press
