Montreal (Canada) (AFP) - Canadian Prime Minister Mark Carney on Tuesday said reducing economic ties with the United States would come at a cost but the long-term benefits were clear, as retaliatory tariffs on US products took effect.

With the trade war between the North American neighbors heating up, the new Canadian duties apply to $27.6 billion (US$20 billion) in US imports, covering steel and aluminum products as well as dairy goods like cheese.

“We have everything we need to pivot and prosper,” Carney said. “That pivot will come at a cost. There’s always a cost to action. But it doesn’t come close to the cost of standing still.”

Ottawa’s pushback comes after President Donald Trump imposed tariffs on a similar value of Canadian products, over what Washington deemed “discriminatory treatment” against US alcohol, automobile and dairy industries.

In the latest colorful US rhetoric, Treasury Secretary Scott Bessent said Tuesday that Carney “needs to stop campaigning and start governing,” adding the US was unsure why Canada pulled out of negotiations.

On Monday, Trump threatened to try to block sales of Canada’s Bombardier Aviation unless the Quebec-based plane maker moves manufacturing to the US.

In response, the aerospace company pointed to its creation of tens of thousands of jobs across the United States, with “direct employment” in more than 20 states, including Kansas, Texas, Arizona and California.

“Bombardier values its great partnership with American companies and its US employees,” the company’s statement said.

US tariffs pose a modestly negative risk to Canada’s overall economy, but analysts note that they have a sharper impact on central Canada’s manufacturing sector.

- ‘Lake America’ -

“I don’t believe in escalating the conflict. That’s not constructive,” Carney said in his video statement Tuesday. “But our tariffs are necessary to protect our workers, protect our companies, and our communities.

“This is about who we are as Canadians. It’s about our livelihoods and the country that we leave to our kids.”

Negotiations between both sides broke down August 21 after days of meetings in Washington.

At the time, Carney said US negotiators had introduced restrictions on Canadian trade deals with other countries at the eleventh hour.

US officials also made unacceptable “threats” to the French language and “Quebec culture,” he added, referencing the French-speaking province in eastern Canada.

Ottawa and Washington have not resumed talks since, and Trump has continued his attacks.

On Sunday, Trump posted an illustration of himself towering over Carney as they played ice hockey, with Trump saying “Get up, governor” – a reference to Trump’s determination to turn Canada into another US state.

Trump also signed an order in August to rename Lake Ontario, on the border with Canada, as “Lake America” – sparking fury in Canada amid a broader wave of patriotism triggered by the US president’s hostility.

Although Carney is backed by Canadian public opinion, his country remains reliant on its neighbor. Nearly 60 percent of Canada’s imports come from the United States and about 70 percent of its exports go to the US market.

To help businesses and workers, Canada’s government has unveiled an aid package of $7.5 billion (US$5.4 billion).