Canada slaps retaliatory tariffs on US after trade talks fail

Canadian Prime Minister Mark Carney announced retaliatory tariffs on US steel and dairy products, escalating a trade dispute after negotiations with Washington collapsed. Carney stated Canada could not accept the terms offered by the United States, characterizing them as uneconomic and unfair.

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We cannot accept what they’ve offered, and we will not give what they’ve asked.

"We cannot accept what they’ve offered, and we will not give what they’ve asked," Carney declared at a press conference in Ottawa. He accused President Donald Trump of initiating a trade "war," asserting, "You’re at war when you get attacked. We got attacked."

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You’re at war when you get attacked. We got attacked.

The new Canadian tariffs, set to take effect on September 8, are a direct response to US duties imposed on Canadian goods. These US tariffs impact approximately $20 billion worth of Canadian exports, including items like hockey sticks and cement. The White House had previously alleged discriminatory treatment by Canada against US alcohol, automobile, and dairy products.

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We believed earlier this week that we were moving towards a mutually beneficial agreement.

Negotiations in Washington broke down Friday, leading to the collapse of a deal that Canadian negotiators had worked on throughout the week. A senior US official described the talks as candid but noted no further meetings were scheduled. Canada had been seeking relief from existing US tariffs on autos, steel, and aluminum, which have negatively affected its economy and led to job losses.

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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.