Name? Mark Carney
Westphalian identity? Canadian
Age? 61
Why is he in the news? Canadian Prime Minister Mark Carney responded to the 50% tariffs announced by the Trump administration on Ottawa’s dairy, cement, and select consumer goods. In a statement to Canadian provincial premiers and municipal leaders, Carney highlighted the possibility of retaliatory tariffs.
Why do we care? This new round of duties invokes Section 338 of the Tariff Act of 1930 and replaces the levies issued under Section 122 of the Trade Act of 1974 that expired on July 24th. Canada faces the steepest tariff of any country over ongoing USMCA negotiations, which Trump did not renew on July 1st. Carney has suggested that the tariffs amount to a US negotiating tool and has agreed to intensify bilateral trade talks as the Trump administration pursues agreements with Mexico and Canada on separate tracks.
Why should you care? Invoking the Tariff Act of 1930 is not exclusive to Canada. The top 60 US trading partners ranging from the EU to China face duties of 10 to 12.5% on all goods entering the US. Trump’s previous tariffs were struck down by a Supreme Court intervention. This latest provision has not yet been tested in court but if it survives it lays the groundwork for more aggressive tactics as it allows for a maximum 50% tariff rate based on forced labour practices and “unequal treatment” of US industries.
Who else cares? Mexican President Claudia Sheinbaum met with US officials last week as the two countries entered their third round of trade talks, which excluded Canada. Sheinbaum has proved more accommodating than Carney, with Trump seeking to impose the terms he agrees to with Mexico on Canada as well, ahead of Ottawa’s own negotiations.
Any further comments? Canada was one of the few countries to announce retaliatory levies of 25% on $21.7 billion worth of goods during the initial round of tariffs in April 2025.
