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Canadian Prime Minister Mark Carney has announced retaliatory tariffs against the United States after trade negotiations between the two longtime allies collapsed over what he described as an unfair deal.
The announcement came on Saturday, a day after talks in Washington broke down, triggering new 50 per cent US tariffs on about $20 billion worth of Canadian goods.
The affected products include hockey sticks, cement and other goods, representing about 5.5 per cent of Canada’s exports to the United States.
“You’re at war when you get attacked. We got attacked,” Carney said while announcing the retaliatory measures.
The Canadian Prime Minister said earlier negotiations had been productive but that Washington introduced new terms at the last minute that were unacceptable to Ottawa.
“In recent days, the United States proposed new terms that were uneconomic, unfair and undermined the net benefits for Canada, and called into question the reliability of any deal,” Carney said.
“We cannot accept what they’ve offered, and we will not give what they’ve asked.”
Canada’s new tariffs will particularly target US steel and dairy products and are scheduled to take effect on September 8. Carney said further details would be announced next week.
The latest escalation follows months of tension between the two countries over tariffs imposed by US President Donald Trump on Canadian goods, including automobiles, steel and aluminium.
Trump had earlier expressed optimism about reaching an agreement with Canada, citing his “good relationship” with Carney. He also granted negotiators a three-day extension after talks appeared to be making progress.
However, US Trade Representative Jamieson Greer said Washington was moving ahead with measures in response to Canada’s retaliation. He added that no new negotiations with Canadian officials had been scheduled.
Carney said the talks also broke down after US negotiators sought restrictions on Canada’s trade agreements with other countries. He also accused Washington of making unacceptable threats concerning the French language and Quebec culture.
The escalating dispute has raised concerns among businesses and political leaders in both countries, with US critics warning that the tariffs could increase costs for businesses and consumers.
The Business Roundtable, representing about 200 leading US companies, warned that the new tariffs could raise costs for American businesses and families and called on both governments to return to negotiations.
The latest dispute also comes as the two countries face negotiations over the North American trade agreement, USMCA, while Trump’s repeated suggestion that Canada could become the 51st US state has further strained relations.
Carney said Canada must reduce its economic dependence on the United States, which currently accounts for about 70 per cent of Canadian exports.
