Canada will impose retaliatory tariffs on selected US imports from September 8 after trade negotiations with the United States broke down, Prime Minister Mark Carney said.
The move comes after US President Donald Trump imposed 50% tariffs on Canadian products, escalating trade tensions between the two longstanding allies and major trading partners.
Carney said Canada would introduce “dollar for dollar” tariffs on a range of US goods, including steel, electronics, dairy products, appliances, agricultural equipment, pulp and paper. Further details of the measures are expected to be announced in the coming days.
The latest tariffs follow the collapse of three days of intensive negotiations on Friday, with both countries blaming the other for the failure to reach a new trade agreement. The breakdown has also raised concerns over the future of the United States-Mexico-Canada free trade pact.
“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney said at a press conference in Ottawa.
Asked whether the countries were now engaged in a trade war, Carney said Canada had been “attacked”, adding that Ottawa could not accept the terms proposed by Washington.
US Trade Representative Jamieson Greer described the failed negotiations as a “missed opportunity” for Canada and said Washington would move ahead with measures in response to Canadian retaliation.
Carney said the United States had made several last-minute demands that Canada considered economically unfair and detrimental to its interests. Among the issues was a proposal that could have restricted Canada’s ability to establish new trade agreements with other countries.
The new US tariffs affect sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, covering about US$20 billion of Canadian exports to the US. The duties also apply to some Canadian products that had previously benefited from protection under the three-nation trade agreement.
Canada is also preparing support measures for industries affected by the US tariffs, with Carney saying assistance could remain in place for several years. Trade experts have warned that vulnerable sectors such as softwood lumber and wine could face significant damage, potentially resulting in job losses and business closures.
Another major sticking point in the negotiations involved larger vehicles. Canada sought to extend favourable tariff arrangements for light-duty vehicles to medium- and heavy-duty trucks, but the US opposed the proposal.
Carney said the US position could disadvantage Canadian-made models, including Ford’s F-350, F-450 and F-550 trucks as well as General Motors’ Silverado, by making production in Canada less competitive.
He also said some US proposals touched on Canadian culture, language and sovereignty, although he did not provide further details.
The escalating dispute comes as Canada seeks to reduce its heavy dependence on the US market, with nearly 70% of its exports currently destined for its southern neighbour.
