Volkswacht Bodensee - Carney links Trump's new tariff threat to N. America trade deal review

Asked about Trump's threat to impose 100-percent tariffs on Canadian imports should Ottawa finalize a new trade deal with China, Carney told reporters that the North American free trade deal is up for review this year and "the president is a strong negotiator."

"I think some of these comments and positioning should be viewed in the broader context of that," Carney said.

Trump has so far adhered to most of the existing United States-Canada-Mexico Agreement (USMCA), which the president negotiated and praised during his first term.

Canada has been hit hard by Trump's sectoral tariffs -- especially in the auto, steel and aluminum sectors -- but more than 85 percent of bilateral US-Canada trade has remained tariff free through the ongoing trade war.

Substantial changes to the USMCA could upend the Canadian economy.

The USMCA review set for the first half of this year comes as Trump has escalated his rhetorical attacks on Carney.

The Canadian prime minister delivered a blistering denunciation of US global leadership at last week's World Economic Forum in Davos, earning a rare standing ovation and capturing global headlines.

Trump shot back in his own Davos address, telling Carney to watch his words, as "Canada lives because of the United States."

Carney slapped down that claim but has broadly sought caution when replying to Trump's inflammatory remarks.

Trump called Carney "governor" in a social media post over the weekend, reviving an insult he directed at former prime minister Justin Trudeau -- who Trump said was leading the 51st US state, rather than an independent country.

Carney was asked Monday if he was offended by being called governor.

"In this role, you get called a lot of things," Carney said. "I'm not going to comment on every tweet...I can handle it."

T.Suter--VB