Canada to retaliate dollar-for-dollar against U.S. tariffs after trade talks fail

Canada is preparing to retaliate against the United States with dollar-for-dollar tariffs after trade negotiations collapsed last Friday. Prime Minister Mark Carney described the new wave of U.S. tariffs as a "miscalculation" designed to inflict pain and sow division.

"They asked for too much and offered too little," Carney told Canadians on Saturday morning, declaring the country is now in a trade "war" following the imposition of new U.S. duties. He confirmed that Canada would match the U.S. tariffs starting September 8, including levies on steel, dairy, home appliances, and electronics.

The failure of these trade talks has strained the close commercial relationship between the two allied nations, with no clear path to resolution currently in sight. U.S. President Donald Trump has yet to comment on the matter. Both countries had initially been optimistic about reaching an agreement early last week, but negotiations stalled as each side accused the other of making last-minute changes.

“

They asked for too much and offered too little.

As a result of the failed talks, Canada now faces new U.S. tariffs of 50 percent on a variety of Canadian-made goods, in addition to existing tariffs on steel, aluminum, automotive, and lumber from Canada. These new tariffs cover a limited scope, involving approximately $20 billion (RM80.7 billion) of Canadian imports, or about five percent of the total, including wine, dairy products, cement, clothing, and hockey equipment.

Carney stated that Canada's retaliatory measures were taken out of necessity to defend its interests. Detailed information on the countermeasures will be released in the coming days. Other federal party leaders in Canada, including the opposition Conservatives, have expressed support for Carney, as have leaders of several Canadian provinces. Tariffs on imported goods have been a cornerstone of Trump's trade policy, with the U.S. President arguing they would boost American manufacturing and create domestic jobs. Critics, however, argue that the tariffs increase prices for U.S. consumers and disrupt and damage the global economy.

“

Canada made the retaliatory action out of necessity to defend its interests.