Canada will impose sweeping retaliatory tariffs on American goods starting September 8, after trade negotiations with the United States collapsed Friday night.
Prime Minister Mark Carney announced the measures Saturday, saying Canada would match Washington’s new 50% duties on Canadian exports with equal force.
“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families and businesses,” Carney told a news conference in Ottawa.
The U.S. tariffs, which took effect at midnight Saturday, target roughly $20 billion worth of Canadian exports, representing about 5% of total Canadian goods sent to the United States.
Targeted Canadian products include wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, and the measures notably do not exempt goods covered by the U.S.-Mexico-Canada Agreement.
Canada’s retaliatory measures will cover U.S. steel, electronics, dairy products, household appliances, agricultural equipment and pulp and paper, with further details expected in the coming days.
Negotiations had appeared promising earlier in the week, with Canada’s trade minister for the U.S., Dominic LeBlanc, telling reporters Thursday that a deal was “very close.”
President Donald Trump had even postponed an earlier Wednesday deadline, signaling that a finalized agreement was near, but talks ultimately broke down before Friday’s midnight cutoff.
Carney said U.S. negotiators “asked too much and offered too little,” adding that last-minute American demands included restrictions on Canada’s ability to strike trade deals with other nations and weakened protections for language, culture and sovereignty.
He described those demands as “unacceptable,” and said Canada had been willing to drop retaliatory tariffs on steel, aluminum and cars if the United States had substantially lowered its own.
One significant sticking point involved tariffs on medium- and heavy-duty vehicles, with Canada seeking to extend favorable light-duty vehicle terms to larger trucks, which the United States resisted.
Carney warned that the U.S. position would make several Canadian-made Ford (F) and General Motors (GM) models less competitive in the North American market.
U.S. Trade Representative Greer defended the American position, saying “We’ve said enough, and so we’ve taken countermeasures. Our interest is in protecting American workers and protecting American supply chains.”
Greer confirmed that no further talks between the two countries are currently planned, marking a sharp deterioration in one of the world’s most important bilateral trade relationships.
Carney also invoked the energy relationship between the two nations, stating: “Canada fuels American growth … I don’t think they want us to stop sending any of that energy.”
Ottawa plans to announce support measures next week for industries affected by the new duties, with Carney indicating that financial assistance could remain in place for several years.
Canadian business groups warned that the tariffs could severely damage vulnerable industries, trigger significant job losses and force some companies to shut down entirely.
