Ottawa
Canada will impose dollar-for-dollar tariffs on a range of U.S. goods from September 8 after trade talks with Washington collapsed, Prime Minister Mark Carney said, sharply further escalating tensions between the longtime allies.
The retaliatory duties will target U.S. steel, dairy products, appliances, agricultural equipment, pulp and paper, electronics and other imports. Ottawa will release details on measures soon, Carney said.
The move follows President Donald Trump’s decision to impose 50% tariffs on Canadian products, affecting about $20 billion worth of exports, including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment. The new U.S. duties also cover products that had previously benefited from protections under the United States-Mexico-Canada trade agreement.
Carney said Canada could not accept Washington’s demands and would act to protect Canadian workers, farmers, families and businesses. “Canada will match Washington’s new tariffs dollar for dollar,” he said at a press conference in Ottawa.
The Canadian prime minister also described the situation as an attack when asked whether the two countries were entering a trade war. Canada relies heavily on the U.S. market, with nearly 70% of its exports going south of the border.
U.S. Trade Representative Jamieson Greer blamed Canada for the failed negotiations, calling the breakdown a missed opportunity. He said Washington would proceed with measures responding to Canadian retaliation and indicated that no new talks were planned.
The collapse of negotiations could also complicate the future of the three-country USMCA trade pact, increasing regional uncertainty for businesses and workers across North America.
