Market News

BY  Paula Sambo

(Bloomberg) - Canada will keep in place its retaliatory tariffs against US-made products as long as President Donald Trump persists with a trade war, said Mark Carney, the Canadian prime minister-designate.

“The Canadian government is rightly retaliating with our own tariffs,” Carney said during his victory speech Sunday. “My government will keep our tariffs on until the Americans show us respect — and make credible, reliable commitments to free and fair trade.”

Carney, the former governor of the Bank of Canada and Bank of England, won the contest to lead the Liberal Party and will be sworn in as prime minister within days, replacing Justin Trudeau. It was a blowout victory — he received 86% of the vote.

The Trump administration put 25% tariffs on most Canadian and Mexican products last week, prompting Canada to respond with its own 25% levies on C$30 billion ($20.9 billion) worth of items, including orange juice, coffee and fruit. The government has threatened to expand that to include additional C$125 billion in US-produced goods, including cars and trucks, steel and other food items.

While Trump delayed the new duties on many products, there’s still the threat they will return in April.