Mark Carney acknowledged it’s difficult to go dollar-for-dollar in counter-tariffs against the U.S., given how much bigger the American economy is. Photo by ANDREJ IVANOV/AFP via Getty Images

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The discussions with U.S. negotiators revealed that Trump wants to destroy Canada’s major industries — steel, aluminum and autos — with unfair terms, Carney said.

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“There is a mutually beneficial deal possible here, but it has to be one that respects Canada’s sovereignty, that respects our independence, that uses our complementary strengths to build something better, not tear apart for short-term gain,” Carney told reporters Monday, speaking at a news conference in Quebec.

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His comments came hours after Trump pledged to hike tariffs on Canadian autos to 50 per cent — and to tax auto parts as well — starting on Jan. 1. The current rate is 25 per cent but applied only to non-U.S. content in finished vehicles, while auto parts still cross the border tariff-free.

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The threat marks yet another significant escalation of the trade fight, after 50 per cent tariffs on around US$20 billion of Canadian products — including furniture, plastics, plywood and electrical equipment — came into effect Saturday morning. Talks to avert those collapsed on Friday, with each side blaming the other for the breakdown.

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Carney has promised to retaliate with counter-tariffs by Sept. 8, affecting American steel, dairy, appliances, agricultural equipment, electronics and pulp and paper. But the government is still working on a detailed list. He has also pledged support for industries hit by the new U.S. duties.

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“An attitude at the negotiation table that Canada is a subsidiary of the United States, that Canadian industry is going to be disadvantaged relative to American industry, that we’re going to set up terms so that over time Canadian industry is going to face constant headwinds — that’s not something we’re going to accept,” the prime minister said.

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Minutes after his remarks, Trump posted again on social media about Canada, calling Carney “governor” and lambasting Ontario Premier Doug Ford. “Someone should get these clowns to ‘fall in line’ or, the consequences for Canada will be far WORSE!” the president posted.

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‘Range of Options’

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In his remarks Monday, Carney said he prefers to first use “positive” responses to U.S. trade aggression, such as building new coast guard ships with Canadian steel, which he announced alongside Quebec’s premier.

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But Carney said the government is looking at a “range of options” for retaliating against the new U.S. duties and isn’t ruling anything out when it comes to potentially using critical minerals, energy or other goods that Canada exports south of the border.