Canada to Match New U.S. Tariffs After Trade Talks Fail
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Prime Minister Mark Carney announced Canada will impose reciprocal tariffs on U.S. goods following the collapse of negotiations, describing the U.S. measures as a miscalculation.
Prime Minister Mark Carney said the United States' latest tariffs on Canadian imports were a "miscalculation" that would harm bilateral relations. He announced that Canada will impose matching duties "dollar-for-dollar" beginning 8 September, covering products such as steel, dairy, appliances and electronics.
The new U.S. duties, which include a 50% tariff on a range of Canadian goods, affect roughly $20 billion in imports, about 5% of total trade, and add to existing tariffs on steel, aluminium, automobiles and lumber. Carney described the retaliation as reluctant but necessary to protect Canadian interests, and said details of the counter-measures would be released in the coming days.
Negotiations broke down after both sides accused each other of last-minute changes to the proposed deal. U.S. trade representative Jamieson Greer told Fox News there were no plans to resume talks, while Carney argued the U.S. offered "unacceptable" terms that would limit Canada’s ability to negotiate future trade agreements.
Provincial leaders, including Ontario Premier Doug Ford and British Columbia Premier David Eby, expressed support for the prime minister’s stance. Opposition leader Pierre Poilievre called the U.S. levies "unjustified," and Quebec Premier Christine Fréchette warned of potential job losses. Alberta Premier Danielle Smith urged both governments to return to the negotiating table.
The dispute comes amid a broader review of the United States-Mexico-Canada Agreement, which underpins $1.6 trillion in annual trilateral trade.