Canada's Prime Minister-designate Mark Carney has said he is
ready to negotiate a renewed trade deal with President Donald Trump, as long as
there is "respect for Canadian sovereignty".
Carney made these comments during a visit to a steel plant
in Hamilton, Ontario, as Canada unveiled C$29.8 billion ($20.7 billion) in
reciprocal tariffs on US imports.
It comes after Trump slapped 25% tariffs on all steel and
aluminium coming into the country.
Since President Trump took office in January, the two
countries have been involved in an escalating trade war, with the US president
repeatedly threatening to annex its neighbour.
Carney on Wednesday condemned the latest round of US tariffs
as "unjustified".
"We're all going to be better off when the greatest
economic and security partnership in the world is renewed, relaunched," he
said.
Canada, which is the
biggest foreign supplier of steel and aluminium to
the US, is heavily exposed to the tariffs.
Trump has justified the tariffs, claiming they are necessary
for US national security and to boost demand for domestic producers, which he
argues has been "depressed" by foreign competition.
The US president implemented a blanket 25% tariff on goods
from Canada and Mexico, citing concerns over drugs and migrants crossing the US
border.
The tariffs on steel and aluminium, effective Wednesday,
mark the end of exemptions previously granted to several countries, including
Canada.
In retaliation, Canada announced tariffs on US goods,
including steel and aluminium, with additional measures set to take effect at
00:01 EST (04:01 GMT) on Thursday.
The new tariffs cover a range of products, including C$12.6
billion on steel, $3 billion on aluminium, as well as tools, computer
equipment, water heaters, sports equipment, and cast-iron products.
Experts say the growing trade dispute threatens economic
stability for both countries.
On Wednesday, Canada's central bank cut interest rates to
2.75% from 3% to prepare the
country's economy for disruption.
Canadian Finance Minister Dominic Leblanc told a news
conference that the country was still seeking to de-escalate.
"If you're racing to the basement, there's no real
prize for the first person to get to the basement," Leblanc said.
On Thursday, Ontario Premier Doug Ford, along with federal
representatives, will meet US Commerce Secretary Howard Lutnick.
Lutnick told Fox Business Network that at the meeting he
plans to try to "level set" things between the two nations.
Mark Carney, who was elected leader of the governing Liberal
Party on Sunday, is set to be sworn in as prime minister, replacing Justin
Trudeau. He has promised to win the trade war against Trump, following his
landslide victory.
