Prime Minister Mark Carney is warning Canadians that tough economic times are ahead as the trade war with the U.S. continues.
His comments come as Canada's $27.6 billion in retaliatory tariffs officially came into effect, weeks after talks were stopped ahead of a potential deal between the two countries.
The federal government stopped negotiating due to what it called unreasonable last-minute requirements. This included restricting the French language, restricting which countries Canada can trade with, and limiting the reach of several sectors.
Since no deal was secured, the U.S. introduced 50 per cent tariffs on roughly $28 billion of Canadian goods.
Carney explained that matching the tariffs was necessary even though many Canadians will be directly impacted.
"I don't believe in escalating the conflict; that's not constructive. But our tariffs are necessary to protect our workers, protect our companies, and our communities. We can't let American goods into Canada tariff-free, while they charge our companies to export them," he said.
Carney also talked about the importance of moving away from the country's economic dependence on the U.S. While he believes this will be a positive in the long term, he understands that the short term will be tough on many.
He would go on to say that standing still and allowing the country to be attacked is not an option.
"This is about who we are as Canadians. It's about our livelihoods and the country we leave to our kids. It's about making Canada strong, and it's about the compassion that makes us who we really are," added Carney.
Carney also mentioned that his government is willing to continue negotiating, only if the U.S. agrees to find a solution that benefits both countries.
