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Carney Says New U.S.Tariffs on Canadian Goods Violate Free Trade Agreement

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21 Jul 2026 - 08:25

The Kabul Tribune (KT) — Canadian Prime Minister Mark Carney said the 50% tariffs imposed by U.S. President Donald Trump on Canadian goods are a "direct violation" of the Canada-United States-Mexico Agreement (CUSMA), accusing Washington of continuing unilateral trade policies.

In a statement, Carney said the new tariffs, including those affecting Canada's automotive industry, contravene the provisions of the CUSMA free trade agreement.

He said Canada has responded within its legal rights by implementing reciprocal measures proportionate to the U.S. action.

According to Carney, Canada's provinces, territories and citizens have united to support the country's economy, workers, farmers, businesses and families in response to the tariffs and what he described as "a threat to Canada's sovereignty."

The Canadian prime minister said that, given the shift in the United States' approach to trade relations over the past 18 months, his government has submitted comprehensive proposals to resolve the dispute and modernize the CUSMA agreement. He added that Canada is prepared to pursue negotiations with Washington more intensively in the coming weeks.

Carney reaffirmed Canada's commitment to free and fair trade, noting that the country has signed more than 20 new economic and security agreements with international partners.

He also said the ongoing trade dispute has driven up costs, particularly for American families.