TORONTO (AP) — Canadian Prime Minister Mark Carney said Tuesday that Canada would act faster to reduce its economic dependence on the United States and deepen its ties with Europe, as retaliatory tariffs took effect on about $20 billion worth of American goods and the country braced for President Donald Trump’s response. “In too many areas, they wanted dependency, not true economic partnership,” Carney said in a prerecorded video outlining his government’s plan to resist the trade war. The prime minister said four decades of deeper economic integration had left Canada too dependent on the United States. Canada is exploring ties with the European Union that could end just before it becomes a member, said a Canadian official familiar with the discussions. Options could include expanding existing agreements, negotiating a new treaty, or creating other forms of cooperation. The official said Canada is already consulting provinces, territories and labor groups on what a deeper relationship with the EU could look like, but no model has been chosen. The official spoke on condition of anonymity because he was not authorized to discuss the talks publicly. Carney is due to travel to Strasbourg, France, next week, where he will attend European Commission President Ursula von der Leyen’s State of the European Union address on September 16 and address the European Parliament the following day. The trade war began after Trump returned to power and imposed a series of tariffs on Canadian goods despite having repeatedly negotiated and praised the North American trade deal during his first term. Many of these tariffs violate the pact. The split is especially surprising because the countries have long shared one of the closest relations in the world, with deeply integrated economies, close defense and security cooperation, vast cultural ties and, before relations deteriorated, around 400,000 people crossed the border each day. Canada looks beyond the United States The latest U.S. trade actions will cause problems in the short term, Carney acknowledged, but he said they would push Canada to move faster on investment, infrastructure and trade diversification. He acknowledged the change would be costly, but said staying still would cost more. Carney compared Canada’s deteriorating relationship with Washington to its push to deepen ties elsewhere. “For the last year and a half, we have been steering our economy toward reliable partners,” he said. “It was an easy business, but it meant we were too reliant on one economic partner,” he said. “That time is up.” Canada retaliates as Trump response looms Carney defended the retaliation, saying Canada was matching the latest U.S. measures dollar for dollar while supporting affected workers and industries and accelerating efforts to expand trade with other countries. “We cannot allow American products to enter Canada tariff-free while they charge our companies to export to them,” he said. Subscribe to Morning Wire: Our flagship newsletter breaks down the day’s biggest headlines. Canada was not seeking to escalate confrontation, he said, but the tariffs were necessary to protect Canadian workers. The prime minister also defended Canada’s decision to withdraw from the talks, saying Washington was seeking limits on French language and cultural protections, influence over future trade deals and terms that would weaken the auto, steel and forestry sectors. How the trade war ends could have consequences far beyond Canada, testing whether a smaller U.S. ally can withstand Trump’s economic pressure without being forced to concede. U.S. Trade Representative Jamieson Greer has suggested Washington could retaliate by blocking some Canadian products from the U.S. market. The Canadian official said Ottawa has no intention of changing course regardless of whether Trump responds with nothing or what the official called a “nuclear response.” The government’s strategy will continue to focus on building more in the country and diversifying foreign trade, the official said. The tariffs affect hundreds of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics and agricultural equipment, at rates of 15%, 25% or 50%. They cover about $20 billion in American goods, about 6% of the $333.6 billion the United States exported to Canada last year. Since trade talks between Canada and the United States collapsed on August 21, Trump and his administration have imposed additional tariffs and issued a series of threats and attacks portraying Canada as weak and dependent. Trump’s trade war and repeated talk of making Canada the 51st state have fueled anger and garnered support for Carney. Canadians have sharply reduced travel to the United States and boycotted American products. Carney praised those efforts, saying that “every time we decide to buy Canadian products and travel to Canada, we are sending the message that there is no one in the stands, 40 million of us are on the ice.” Neither side is rushing back to the table. Gabriel Brunet, spokesman for Canada-U.S. Trade Minister Dominic LeBlanc, said officials from both countries remain in contact even though formal negotiations have not resumed. “Canadian and US officials have had ongoing talks on a variety of issues, although no formal trade negotiations are taking place at this stage,” Brunet said. Former US trade official Wendy Cutler said neither side seemed willing to make the first move. “With a growing public approval rating now above 70%, Prime Minister Carney is in no rush to reach out to Washington. But most importantly, he has not closed the door on talks,” he said. “Clearly, at this point neither side wants to appear too eager to re-engage for fear of appearing weak.” ___ Associated Press writer Paul Wiseman in Washington contributed to this report.
