Canada will impose “dollar-for-dollar” tariffs on $20 billion worth of US goods after trade talks collapsed between the two countries. ..reports Asian Lite News Desk
Canadian Prime Minister Mark Carney has announced “dollar-for-dollar” retaliatory tariffs on US goods after trade talks between the two countries broke down, escalating tensions between the North American neighbours.
In a nationally televised address, Carney said Canada’s counter-tariffs on $20 billion worth of American goods would take effect on September 8. The measures will cover a range of sectors, including dairy, steel, appliances, pulp and paper, and electronics.
The announcement came after the United States imposed a 50 per cent tariff on $20 billion worth of Canadian goods on Saturday. The US measures took effect shortly after midnight, at 0400 GMT, according to Xinhua news agency.
Carney said negotiations had been close to producing a mutually beneficial agreement earlier in the week, but the US side introduced last-minute changes that caused the talks to collapse.
He described the changes as “unfair, uneconomic and called into question the reliability of any deal.”
The Canadian prime minister also criticised Washington’s treatment of existing trade agreements, warning that repeated disregard for arrangements such as the Canada-United States-Mexico Agreement could undermine confidence among international businesses.
Carney said the approach was “certainly not good news” for efforts to renew the agreement in the future.
The dispute comes as Canada, the United States and Mexico face negotiations over the future of CUSMA, the trade pact that replaced the North American Free Trade Agreement and came into force on July 1, 2020.
The agreement was negotiated during US President Donald Trump’s first term and was previously described by him as a major achievement.
Washington has already begun formal discussions with Mexico on changes to the agreement, while negotiations with Canada have yet to begin.
On July 1, 2026, the United States declined to renew CUSMA for another 16-year term, triggering an annual review process. The agreement is currently scheduled to expire in 2036.
The latest tariff measures have added uncertainty to an already strained trading relationship between Canada and the United States, which are closely linked through cross-border supply chains and commerce.
Asked why Canada was entering a trade dispute with its largest trading partner, Carney gave a blunt response: “Because we were attacked.”
Despite the escalating tensions, Carney expressed confidence in the Canadian economy and said the country was becoming more resilient and less dependent on the United States.
He pointed to employment growth and investment as evidence of Canada’s economic strength, saying Canada was creating jobs at four times the rate of the United States and that foreign direct investment had reached a 20-year high.
“Canada is becoming stronger and less dependent on America,” he said.
The Canadian government’s decision to impose retaliatory tariffs marks a significant escalation in the latest trade dispute and sets the stage for further negotiations over tariffs and the future of North American trade relations.
