Prime Minister Mark Carney says Canada will continue working to defend its economy after the United States administration announced its intention to impose a new 50% tariff on a significant number of Canadian goods.
In a statement issued Monday, July 20, 2026, from Ottawa, Carney said the move is the latest in a series of unilateral U.S. trade actions that began with tariffs he said violate the Canada-United States-Mexico Agreement (CUSMA), the free trade agreement between Canada, the United States, and Mexico.
“These include tariffs on the Canadian auto sector, in violation of CUSMA. Canada, as is its right, has merely matched those measures,” Carney said.
The prime minister said provinces, territories and Canadians across the country have stood together in response to the measures and threats to Canadian sovereignty, taking action to support the economy and defend workers, farmers, businesses and families.
Carney said that recognizing the U.S. has been transforming all of its trade relationships, including those covered under CUSMA, over the past 18 months, Canada has made a series of detailed and comprehensive proposals to resolve the dispute and modernize the agreement.
“We stand ready to intensify those discussions in the coming weeks,” he said.
The prime minister said Canada believes in the benefits of free and fair trade, pointing to the new government’s signing of more than 20 new economic and security partnerships. He said the trade dispute has raised costs for families, particularly in the U.S., and that Canada stands ready to engage intensively to address outstanding issues with the U.S. to the mutual benefit of citizens on both sides of the border.
“In all circumstances, Canada will work relentlessly and take any measures necessary to build our strength at home and to support Canadian workers, farmers, businesses, and families,” Carney said.
