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

Canadian Prime Minister Mark Carney declared on Saturday that Canada will retaliate against the United States after trade negotiations collapsed. He vowed to match the new U.S. tariffs "dollar-for-dollar," which took effect at midnight. The retaliatory measures will target sectors including steel, dairy, appliances, and electronics, mirroring the 50% levies imposed by Washington on approximately $20 billion of Canadian exports.

Carney characterized the U.S. tariffs as "a mistake in calculation" and "a new attack on Canada." He asserted that despite the escalating trade war, Canada is stronger, more united, and more determined than when the conflict began. He highlighted Canada's solid fiscal position within the G7 and its resilient economy as resources to navigate the situation and continue to prosper.

While negotiations had progressed, Carney explained that the U.S. introduced "unacceptable" last-minute conditions concerning the automotive sector and restrictions on Canada's ability to secure other trade agreements. He emphasized that Canada refused to compromise its sovereignty, fundamental industries, or its ability to protect the French language and culture.

Carney accused the Trump administration of attempting to undermine Canada's independence and weaponize the economic integration between the two nations. He noted that the U.S. has transformed its trade relationships, using economic integration as a tool. The failure of these negotiations allows Trump to implement the 50% tariffs on Canadian products, some of which comply with the USMCA agreement.

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No estábamos dispuestos a comprometer la soberanía de Canadá ni a debilitar nuestras industrias fundamentales.