US trade demands showed desire for Canada's 'dependency,' not partnership: Carney

Canadian Prime Minister Mark Carney said on Tuesday that US demands during trade negotiations showed Washington sought to deepen Canada's reliance on American rather than pursue genuine "economic partnership," as Ottawa's retaliatory tariffs against the US took effect.

In a video message, Carney noted a history to draw a parallel with the current trade dispute, reflecting that "before he became president, William McKinley was an Ohio congressman known as the 'Napoleon of protection.'"

He noted "McKinley championed the Tariff Act of 1890," which "put 50% tariffs on our exports to the US," adding, "Sound familiar?"

Carney said the 19th-century tariff was "meant to pressure us into dependence and eventually annexation by the United States," but "in reality, it did just the opposite," as Canada "diversified" while the US saw inflation rise, "a financial crisis and a four-year economic depression."

"Let's be clear: it's a shame, because a mutually beneficial trade agreement between Canada and the United States is possible," he said, adding it would be one that "respects our sovereignty" and "lowers costs for families on both sides of the border."

Carney said Canada "consistently proposed long-term partnerships, while the US has too often demanded short-term transactions," noting that even "at the 11th hour," Washington was "still pursuing restrictions" on Canada's ability "to protect and promote the French language and our culture."

"We worked in good faith to reach a fair deal, but since a fair deal wasn't on the table, we made the right choice to walk away from a bad one," he said, adding that US demands showed "they wanted dependency, not a true economic partnership."

Carney also affirmed that Canada is "matching the new US tariffs dollar for dollar with new tariffs of our own," while stressing he does not "believe in escalating the conflict."

After trade talks between Canada and the US collapsed last month, the US moved to impose 50% tariffs on key Canadian goods.

In response, Canada's retaliatory tariffs on $20 billion worth of US goods took effect early Tuesday, escalating a trade war between the neighboring countries.

Canada clarified that the counter-tariffs only apply to goods originating from the US and will not affect shipments already in transit on the day of implementation.

The trade dispute has intensified dramatically under the administration of US President Donald Trump, with successive rounds of import taxes and retaliatory measures.

Trump has repeatedly criticized the Canada-US trade gap, pointing to it as a core reason for imposing tariffs and regularly alleging that Ottawa is "ripping off" America.