Canada to hit US with retaliatory tariffs as trade war escalates

Carney says Canada won't compromise sovereignty in tariff standoff

Canada’s Prime Minister Mark Carney has announced retaliatory tariffs on the United States after Washington imposed a 50 percent levy on $20bn worth of Canadian goods.

Carney, speaking in Ottawa on Saturday, said the new Canadian tariffs would target US steel, dairy and electronics industries among others and take effect on September 8.

“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney told reporters.

The announcement came after days of intense negotiations broke down late on Friday, worsening a delicate relationship between the longtime trade partners and allies.

US President Donald Trump’s new tariffs hit sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, and cover some $20bn worth of goods, or 5.5 percent of Canadian exports to the US.

Carney said Trump set conditions that were ultimately unacceptable even though earlier talks had been positive.

“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,” Carney said, adding these demands included curtailing Canada’s ability to forge new trade deals.