Canada Vows Retaliatory Tariffs on U.S. After Trade Talks Collapse

Canada is set to impose retaliatory tariffs on the United States after trade negotiations collapsed, deepening a significant rift between the two North American allies. Prime Minister Mark Carney declared Saturday that Canada would not accept the terms offered by the U.S., characterizing them as "uneconomic, unfair, and undermined the net benefits for Canada."

The trade talks, which had been ongoing in Washington, broke down Friday, allowing new 50% U.S. tariffs on approximately $20 billion worth of Canadian goods to take effect. These U.S. tariffs impact a range of products, from hockey sticks to cement, and represent 5.5% of Canadian exports to the United States.

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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 U.S. President Donald Trump of initiating a trade "war," stating, "We got attacked." Canada's response will notably target the U.S. steel and dairy industries, with the new tariffs scheduled to be implemented on September 8. Further details are expected next week.

U.S. Trade Representative Jamieson Greer indicated that Washington was proceeding with measures in response to Canadian retaliation and expressed uncertainty about when trade talks might resume, noting no new discussions were currently planned. The escalating dispute follows Canada's efforts to seek relief from previous U.S. tariffs on autos, steel, and aluminum, which have negatively impacted the Canadian economy and led to job losses.

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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.