OTTAWA — Prime Minister Mark Carney’s decision to pause Canada-U.S. trade negotiations is creating a new political challenge for the federal government, with Liberal MPs backing the strategy while warning about its economic consequences.

Several Liberal lawmakers have publicly supported Carney’s tougher approach toward Washington, arguing that Canada should not accept a trade agreement that could undermine the country’s economic interests or sovereignty.

However, some Liberal MPs are also expressing concern about the potential impact of a prolonged trade confrontation. Higher tariffs could put pressure on Canadian businesses, jobs and household costs, increasing the political stakes for the government.

Carney has argued that Canada remains open to a mutually beneficial agreement with the United States but will not accept terms that Ottawa believes are unacceptable. His government has also been pursuing stronger economic relationships with other international partners as it seeks to reduce Canada's dependence on the U.S. market.

The opposition is watching closely, with Conservatives expected to continue challenging the government over its trade strategy and economic response.

The coming months could determine whether Carney’s tough negotiating position strengthens his political standing or becomes a growing source of pressure if tariffs begin affecting Canadian workers and consumers more heavily.