Canadian Prime Minister Mark Carney said Tuesday that his government is evaluating all options after U.S. President Donald Trump threatened new tariffs.

The move threatens to disrupt one of the world's largest trading relationships, potentially destabilizing North American supply chains and increasing costs for consumers in both nations.

President Trump announced plans to impose 50% [1] tariffs on many Canadian goods. The U.S. administration indicated these levies could be implemented within 30 days [2]. Trump said the measure is a response to Canada’s treatment of U.S. farmers [3].

Speaking from Ottawa, Carney said he is looking at "all options" [4]. Despite the tension, the Canadian leader said that both nations have agreed to intensify discussions in the coming weeks on a possible deal [5].

The dispute centers on agricultural trade and the access U.S. farmers have to Canadian markets. While some reports suggest the tariffs have already been imposed [3], other sources indicate the U.S. is currently planning the implementation [1], [6].

Canada has not yet announced specific retaliatory measures, but the government is reviewing its trade posture to mitigate the economic impact of the 50% [1] levy. The coming weeks of intensified talks will determine if a diplomatic resolution can be reached before the 30-day [2] window expires.

“"I am looking at 'all options'."”

The threat of high-percentage tariffs signals a shift toward aggressive bilateral negotiation tactics. If a deal is not reached within the 30-day window, the resulting trade war could lead to reciprocal tariffs from Canada, inflating prices for industrial and agricultural goods across the border and straining the diplomatic relationship between Ottawa and Washington.