Prime Minister Mark Carney said Thursday that Canada is intensifying negotiations with the United States to reach a comprehensive trade deal but is prepared to respond should President Donald Trump’s threat of 50% tariffs on Canadian goods go into effect.

The new tariffs, announced by Trump on Monday, are scheduled to come into effect Aug. 19.

“If these tariffs, or other measures come into force, there’s a full range of things that we can do in that regard,” Carney said after meeting with Canada’s premiers and territorial leaders in Charletown, Prince Edward Island.

Carney said “everything’s on the table” if an agreement can’t be reached before the tariffs kick in.

“We don’t need to respond in advance,” he said. “In fact, I think it would be counterproductive at this stage to respond in advance.”

The new tariffs cover a wide range of goods, including honey, liquor, cement, dairy products, some wood products, hockey sticks and other items.

They exclude energy products, potash, fish and critical minerals, but would include goods previously protected from import taxes by the United States-Mexico-Canada Agreement, or USMCA.

That 2020 trade pact was not renewed by the U.S., triggering a new set of negotiations that could run until 2036.

Carney said the tariff threat could be a negotiation tactic by the U.S.

“We’ve seen a series of trade negations that the U.S. has undertaken, and normally there’s a deadline,” he said.

“Normally there’s an outsized tariff associated with that deadline.”

Carney believes there is a willingness among U.S. officials to reach a trade deal.

Prince Edward Island Premier Rob Lantz said the provinces and federal government remain united.

“We need to have a united Team Canada approach,” he said.

“Canada is at it’s best when provinces and territories and the federal government work together.”

Carney said Canada will continue to build and diversity its economy.

“In all circumstances, irrespective of the outcome of these negotiations, Canada will do whatever it takes to build our strength at home and to support Canadian families, workers, our farmers, our businesses,” he said.

The country is also looking to build trade relationships with countries other than the U.S.

“We’re diversifying our partnerships abroad,” he said.

An analysis by Desjardins, one of Canada’s largest financial institutions, says the tariffs will impact about $28 billion Canadian ($19.8 billion) worth of annual Canadian exports to the United States.

That’s about 5% of what the U.S. imports from Canada each year.

“Beyond the direct trade effects, heightened uncertainty could dampen business confidence and curb investment plans,” the analysis says.

The Canadian provinces most impacted would be Ontario, Quebec and British Columbia.

Prior to the meeting Ontario Premier Doug Ford said Canada needs to show strength.

“We need a strong plan,” he said.

“Be on offense. Put everything on the table.”

Ford was asked if he would put a surcharge on electrically his province sells to the U.S.

“It depends where we go with the U.S.,” he said.

“Ontario has the most to lose right now. I will do everything to protect the people of Ontario.”

Carney was asked even if a trade deal is reached with the U.S., can Trump be trusted.

“I have to be convinced, the (negotiating) team has to be convinced the premiers have to be convinced that an agreement is worth the paper it’s written on,” he said.