Ottawa (Rajeev Sharma): Canada will impose retaliatory tariffs on a range of American products after trade negotiations with the United States collapsed, escalating tensions between the two longtime allies and major trading partners.
Prime Minister Mark Carney announced that Canada would match the latest US tariffs “dollar for dollar”, with the countermeasures set to take effect on September 8.
The Canadian tariffs will cover US products including steel, dairy, electronics, appliances, agricultural equipment and pulp and paper.
“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney said.
‘We Got Attacked’: Carney On Canada-US Trade War
Asked whether the two countries were now engaged in a trade war, Carney offered a sharp response.
“You’re at war when you get attacked. We got attacked,” the Canadian Prime Minister said.
His remarks came after US President Donald Trump ordered 50 per cent tariffs on a range of Canadian products following the breakdown of three days of negotiations.
The latest American duties cover about USD 20 billion worth of Canadian exports and affect products including wine, furniture, dairy goods, cement, clothing, fishing rods and hockey equipment.
Unlike earlier measures, the latest duties also do not exempt Canadian goods covered by the existing three-country trade agreement.
Why Did US-Canada Trade Talks Collapse?
Both Washington and Ottawa have blamed each other for the failure to reach an agreement.
Carney said negotiations had been making progress before the US presented new demands that Canada considered unacceptable.
“In recent days, the US proposed new terms that were uneconomic, unfair, and undermined the net benefits to Canada, calling into question the reliability of any deal,” he said.
Carney said some of Washington’s proposals would have restricted Canada’s ability to negotiate new trade agreements with other countries. He also referred to US demands affecting Canadian culture, language and sovereignty, without providing further details.
“We cannot accept what they have offered, and we will not give what they have asked,” he said.
US Trade Representative Jamieson Greer, however, described the failed negotiations as a “missed opportunity” for Canada and said no new talks were currently planned.
Vehicle Tariffs Emerge As Major Sticking Point
The treatment of vehicles was reportedly another major obstacle during negotiations.
Canada wanted favourable tariff conditions proposed for light-duty vehicles to also cover medium- and heavy-duty trucks. Washington resisted the demand.
Carney argued that the US position would put Canadian-made vehicles, including some Ford F-Series trucks and General Motors Silverado models, at a competitive disadvantage.
The new American tariffs affect around 5 per cent of Canadian exports to the US, but sectors such as softwood lumber and wine could face significant pressure.
Canada Plans Support For Industries Hit By Tariffs
Carney said his government would announce measures next week to support Canadian businesses and workers affected by the new tariffs, warning that assistance may be required for years.
Ontario Premier Doug Ford backed the decision not to accept Washington’s terms, arguing that the proposed agreement would have hurt Ontario’s automobile, steel and manufacturing industries.
Opposition Conservative leader Pierre Poilievre also called for Canadians to remain united against what he described as unfair attacks on the country’s jobs and businesses.
The dispute creates fresh uncertainty around the future of the US-Mexico-Canada trade framework, while Canada’s retaliatory tariffs scheduled for September 8 raise the prospect of a prolonged trade confrontation between Ottawa and Washington.
