Canada to hit US with retaliatory tariffs as trade war escalates

Canada is set to retaliate against the United States with its own tariffs on American goods, escalating a burgeoning trade war. Prime Minister Mark Carney announced Saturday that Canada will impose levies on U.S. steel, dairy, electronics, and other products, matching Washington's 50 percent tariff on $20 billion worth of Canadian goods.

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Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses.

"Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses," Carney told reporters in Ottawa. The new Canadian tariffs are scheduled to take effect on September 8. The announcement follows the breakdown of intense negotiations late Friday, further straining relations between the two long-time trade partners and allies.

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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.

Carney stated that the U.S. had proposed "uneconomic, unfair" terms that undermined benefits for Canada and questioned the reliability of any deal. He specifically cited demands that would curtail Canada's ability to forge new trade agreements and made unacceptable "threats" to French language and "Quebec culture." "We cannot accept what they’ve offered, and we will not give what they’ve asked," he declared.

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

U.S. Trade Representative Jamieson Greer told Fox News that no new talks are planned, stating, "We’re moving forward with measures that respond to Canadian retaliation." The new U.S. tariffs, which hit sectors including wine, furniture, dairy, cement, clothing, fishing rods, and hockey equipment, are expected to significantly impact Canada's economy, with potential increases in costs, prices, and unemployment.

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We’re moving forward with measures that respond to Canadian retaliation.