Canadian
'Kennedy’s proposal assumes a level playing field that isn’t there'
Louisiana Senator John Kennedy Taken from X
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Republican Louisiana Senator John Kennedy has challenged Canadian Prime Minister Mark Carney, pressing Canada to eliminate its tariffs entirely in response to U.S. trade aggression under President Donald Trump.
Kennedy’s remarks, made on the U.S. Senate floor, arrive as tensions mount over reciprocal tariffs set to begin April 2. Yet analysts say Kennedy’s proposal oversimplifies the intricate trade relationship between the two countries.
On Thursday, Carney told reporters in Ottawa that Canada should “fundamentally reimagine (its) economy” in the context of U.S. tariffs and the “old relationship” between Canada and America is “over.”
In his speech, Kennedy positioned his challenge as a litmus test for free trade, saying, “That is my respectful challenge to Prime Minster Carney tonight. If you think President Trump is being unfair and is not a free trader, then reduce your tariffs to zero, and ask President Trump to do the same.”
Kennedy pointed to Canada’s $63 billion trade surplus with the U.S. as justification for Trump’s tariff threats, which aim to bolster American industries. Carney, who took office March 14, has pledged to push back against what he deems “unjust” U.S. tariffs, including a recent 25% levy on Canadian steel and aluminum.
Canada has countered with tariffs on $60 billion in U.S. goods and is prepared to target an additional $95 billion if Trump escalates further. Carney has also dismissed Trump’s tongue-in-cheek suggestion that Canada join the U.S. as its 51st state, declaring Canada will “never, ever” yield to such ideas.
Analysts contend Kennedy’s zero-tariff idea overlooks key economic disparities. Canada relies on the U.S. for roughly 75% of its exports, a dependence shaped by proximity and decades of trade integration under pacts like the Canada-U.S.-Mexico Agreement (USMCA).
In contrast, trade with Canada constitutes just 3% of the U.S. economy, giving the Americans significant leverage.
“Kennedy’s proposal assumes a level playing field that isn’t there,” said Laura Dawson, an Ottawa-based trade analyst with the Wilson Center. “Canada’s economy is far more vulnerable. Scrapping tariffs might placate Trump briefly, but it could devastate Canadian sectors reliant on those barriers without ensuring the U.S. follows suit.”
Last year, the U.S. imported $413 billion in Canadian goods — mostly energy — while sending $349 billion north. Dawson noted that Canada’s average tariff rate of 4.1% is already competitive globally, and dropping it to zero could swamp Canadian markets with U.S. products, jeopardizing industries like farming and manufacturing.
Kennedy’s challenge coincides with Trump’s plans to roll out a wider tariff strategy next week, targeting Canada, Mexico, and China. U.S. Treasury Secretary Scott Bessent has suggested that matching tariffs imposed on American goods could spark talks.
However, Carney has indicated he’s ready to lock horns, supported by domestic efforts to dismantle interprovincial trade barriers by July 1 to cushion losses from the U.S. market.
“Kennedy might see this as a straightforward quid pro quo, but he’s missing the imbalance,” said Mark Warner, a Toronto economist focused on global trade.
“Canada can’t just drop its defences. The U.S. market is our backbone, and Trump knows it. Carney’s counterstrikes, though bold, at least show strength.”
Online conversations reflect the high stakes, with Canadians weighing Carney’s defiance against Kennedy’s tactic. Some view the senator’s stance as a misjudgment of Canada’s economic fragility — others see it as a clever move to corner Ottawa.
With the April 2 deadline approaching, the Canada-U.S. trade partnership teeters on edge.
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Kennedy challenges Carney
