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Canada has announced fresh tariffs on selected US goods after Prime Minister Mark Carney rejected Washington’s latest trade proposals, describing the terms as unfair and economically damaging.
The development marks a further escalation in the trade dispute between the two longtime allies following the collapse of negotiations in Washington on Friday.
Carney announced the retaliatory measures on Saturday, saying the United States had imposed new 50 per cent tariffs affecting about $20 billion worth of Canadian goods, equivalent to roughly 5.5 per cent of Canada’s exports to the US.
The affected products include items such as hockey sticks and cement.
“You’re at war when you get attacked. We got attacked,” Carney said while announcing Canada’s response.
The new Canadian tariffs will particularly target American steel and dairy products and are scheduled to take effect on September 8. Carney said further details would be announced next week.
The Canadian prime minister said negotiations had initially made progress but broke down after the US presented terms that Ottawa could not accept.
“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.”
US Trade Representative Jamieson Greer told the New York Times that Washington had offered to reduce tariffs on Canadian steel, aluminium and automobiles, while removing a recently introduced tariff on Canadian lumber.
Greer said the proposed concessions would have given Canada highly favourable treatment compared with other US trading partners.
However, he later told Fox News that the US was preparing measures in response to Canada’s retaliation and that no further negotiations had been scheduled with Canadian officials.
The latest dispute follows months of tensions over US tariffs on Canadian automobiles, steel and aluminium, which Ottawa says have contributed to economic difficulties and job losses.
Washington has also accused Canada of imposing discriminatory duties on American alcohol, automobile and dairy products.
The measures were initially scheduled to take effect earlier in the week, but President Donald Trump delayed them for three days, citing progress in negotiations.
Carney said the talks ultimately collapsed partly because US negotiators introduced new restrictions on Canada’s trade agreements with other countries at the last minute.
He also accused Washington of making unacceptable demands concerning the French language and Quebec culture.
Trump responded on Sunday by criticising Canada and arguing that the country should not expect the benefits of being a US state without accepting the responsibilities.
The escalation has also drawn criticism from some US Democratic politicians and governors in border states, who warned that the tariffs could increase costs for American businesses and households.
The two countries still face another major trade challenge as they prepare to negotiate changes to the United States-Mexico-Canada Agreement (USMCA), the North American trade pact.
Carney has repeatedly said Canada needs to reduce its economic dependence on the United States, which currently accounts for about 70 per cent of Canadian exports.
“We’ve been under no illusions. We recognized from the start that America has changed,” Carney said.
The Canadian prime minister also held discussions with provincial leaders on the next steps, with Ontario Premier Doug Ford calling for unity among Canadians and saying Trump could not be trusted.
Meanwhile, a group representing about 200 leading US corporate executives warned that the latest tariffs could raise costs for American businesses and consumers and urged both governments to return to negotiations.
