With Canada No Longer Able to Rely on U.S., Carney Pushes New Markets

Days after Canada was hit by increased tariffs from President Trump, Prime Minister Mark Carney of Canada downplayed talk of trade retaliation on Tuesday, saying he’s focusing on Canada reducing its economic ties to the United States.

“We cannot count or fully rely on what has been our most valued trading relationship for our prosperity,” Mr. Carney told reporters at a lumber mill in West Kelowna, British Columbia. “That’s why we’re increasingly focused on building our strength at home and finding new opportunities for Canadian companies and workers abroad.”

Mr. Carney said that he had not spoken with Mr. Trump since the American president raised broad tariffs against Canada to 35 percent from 25 percent on Thursday and trade negotiations between the two countries collapsed. Mr. Trump indicated at the time that Mr. Carney had unsuccessfully tried to set up a call.

“We’ll speak when it makes sense,” Mr. Carney said.

Mr. Trump denied Canada an extension on trade talks, in contrast with his approach to Mexico. Mr. Trump suspended new tariffs against Mexico for 90 days after speaking last week with its president, Claudia Sheinbaum.

The effect of the increased tariff on Canada was mitigated by the president excluding products that qualify as North American under the trade agreement Mr. Trump made with Canada and Mexico during his first term. Mr. Carney said that about 85 percent of trade between the two countries remains tariff free.

But a 25 percent tariff on autos assembled in Canada, which is adjusted to refect the level of American parts in specific vehicles, as well as 50 percent tariffs on steel and aluminum, are already being felt by those industries.