Canada Imposes Fresh Tariffs on US as Trade Talks Collapse

Canadian Prime Minister Mark Carney has announced retaliatory tariffs on the United States after trade negotiations between the two longtime allies ended without an agreement.

The latest development deepens tensions between Canada and the administration of US President Donald Trump, with new American tariffs already affecting billions of dollars worth of Canadian exports.

The negotiations broke down in Washington on Friday, triggering the implementation of new 50 percent US tariffs on products worth about $20 billion, representing approximately 5.5 percent of Canada’s exports to the United States.

Affected Canadian products include hockey sticks, cement and other goods.

Speaking in Ottawa on Saturday, Carney said Canada had been prepared to reach a mutually beneficial agreement but rejected what he described as unacceptable terms proposed by the United States.

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

He accused the Trump administration of launching a trade war against Canada, saying, “You’re at war when you get attacked. We got attacked.”

In response, Canada will impose new tariffs targeting selected American products, particularly goods from the US steel and dairy industries. The measures are expected to take effect on September 8, with further details to be announced next week.

The United States has maintained that it offered significant tariff reductions on steel, aluminium, automobiles and lumber in exchange for concessions from Canada.

Washington has also accused Canada of discriminatory treatment of American alcohol, automobile and dairy products.

The latest dispute comes as Canada continues to seek relief from existing US tariffs on automobiles, steel and aluminium, which have contributed to economic pressure, job losses and strained bilateral relations.

The two countries must also negotiate revisions to the United States-Mexico-Canada Agreement, known as USMCA, which governs much of their trade.

Relations have deteriorated further over Trump’s repeated remarks about making Canada the 51st US state.

Canada exports roughly 70 percent of its goods to the United States, making the country heavily dependent on its southern neighbour.

Carney acknowledged the changing relationship, saying Canada had recognised from the beginning that “America has changed.”