Canada hits back with new tariffs after trade talks with US fail

Canadian Prime Minister Mark Carney declared on Saturday that Canada would impose retaliatory tariffs on the United States, marking a significant escalation in a trade dispute between the longtime allies. The announcement came after trade negotiations collapsed on Friday in Washington.

The breakdown in talks allowed new U.S. tariffs, set at 50 percent and impacting roughly $20 billion worth of goods or 5.5 percent of Canadian exports, to take effect. These tariffs affect a range of products, from hockey sticks to cement.

U.S. President Donald Trump had previously expressed optimism about reaching a deal, citing his "good relationship" with Carney. However, Carney stated that Trump's administration presented unacceptable conditions. "We believed earlier this week that we were moving towards a mutually beneficial agreement," Carney said in 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. In short, they asked too much, and they offered too little."

“

We believed earlier this week that we were moving towards a mutually beneficial agreement. 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. In short, they asked too much, and they offered too little.

Carney accused Trump of initiating a trade "war," stating, "You're at war when you get attacked. We got attacked." Canada's new tariffs are specifically targeting the U.S. steel and dairy industries and are scheduled to take effect on September 8. Carney indicated that more details would be released in the coming week.

On Friday, U.S. Trade Representative Jamieson Greer had stated that Washington had offered "significant tariff reductions on steel, aluminum, autos and lumber" in exchange for concessions from Canada. A senior U.S. official, speaking anonymously, described the talks as candid but not acrimonious.

“

We cannot accept what they've offered, and we will not give what they've asked. You're at war when you get attacked. We got attacked.