Carney says Canada-US trade deal remains possible

A trade agreement between Canada and the US remains possible, but only if it respects the interests of both sides, Canadian Prime Minister Mark Carney said.

According to Report, Carney made the remarks in a video address published on his YouTube channel.

He said Canada's trade negotiations with the US had failed because Ottawa could not accept the terms proposed by Washington. At the same time, he said a mutually beneficial trade agreement remained possible if it respected sovereignty, built on the strengths of both countries, helped lower prices for families on both sides of the border and created jobs.

Carney added that Ottawa's retaliatory tariffs on US goods, applied on a dollar-for-dollar basis, took effect on September 8.

He said he did not believe escalation was constructive, but noted that the tariffs were intended to protect Canadian workers, businesses and society.

The prime minister also said the Canadian authorities were prepared to take whatever measures were necessary, for as long as needed, to protect domestic producers amid the trade dispute with the US. According to him, the government will initially allocate $7.5 billion for these purposes.

Carney added that Ottawa also intends to strengthen trade ties with European and Asian countries.

Earlier, US President Donald Trump announced plans to impose 50% tariffs on Canadian cars, auto parts and steel from January 1, 2027.