Mark Carney, considered the frontrunner for the next Canadian prime minister, has vowed that Canada "is going to stand up to a bully" following US President Donald Trump's announcement of imposing 25% tariffs on Canadian imports.
In addition to the 25% tariff on Canadian imports, the White House has disclosed tariffs of 25% on Mexico and 10% on China.
The leadership race is scheduled to conclude on March 9. The winner will replace Trudeau, who declared his intention to step down in January after nine years in office as both prime minister and party leader.
Subsequently, Canada must conduct a federal election by October 20, with the Liberal party currently trailing their Conservative rivals in the polls.
Responding to the tariff news, Carney emphasized on Newsnight that "President Trump probably thinks Canada will cave in." However, he asserted, "We're going to stand up to a bully, we're not going to back down," affirming that "We're united and we will retaliate."
The former Bank of England governor warned that the tariffs would tarnish the US's global reputation, hinder growth, spur inflation, and raise interest rates. Carney criticized the move as the "second time" in less than a decade that the US has effectively terminated a trade agreement with its nearest trading partner.
Economists have warned that the newly imposed tariffs could severely impact Canada's economy immediately and lead to increased prices for Americans.
Trump views tariffs as fundamental to his economic strategy, aiming to boost the US economy, safeguard jobs, and generate tax revenue.
Outgoing Prime Minister Trudeau has pledged a "forceful" and "immediate" response to the new tariffs.
Trump announced lower tariffs of 10% on Canadian oil, set to take effect on February 18, while also expressing intent to impose tariffs on the European Union in the future, citing dissatisfaction with the trade relationship.