Carney Faces Time Crunch as Canada's Trade War Support Fades

Prime Minister Mark Carney has broad Canadian support after suspending trade talks with the U.S., but analysts warn this backing could erode within months as the economic consequences of the trade war become apparent. Carney's government announced dollar-for-dollar counter-tariffs on $20 billion of U.S. goods and a C$7.5 billion support package. A poll shows 76% approve of his actions, yet 40% worry about their jobs. Canada relies on the U.S. for about 70% of its exports, and its economy is 13 times smaller. Economists estimate the latest U.S. tariffs could eventually cost 90,000 Canadian jobs. While Canada's unemployment recently hit a two-year low, experts say rising job losses and inflation will pressure Carney to negotiate. A U.S. withdrawal from the USMCA trade agreement could push Canada into recession.