Canada will impose retaliatory tariffs matching new U.S. duties dollar for dollar, Prime Minister Mark Carney said, after last-ditch trade talks with Washington collapsed hours before a fresh round of American tariffs on Canadian goods took effect.
A 50% U.S. tariff on roughly $28 billion ($20 billion) worth of Canadian goods, including hockey sticks, building materials, spirits and certain clothing, came into force just after midnight on Saturday, following the breakdown of negotiations late Friday.
Carney said in a statement that Canada was suspending trade talks and recalling its negotiators to Ottawa, adding that “last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.” He said important progress had been made in the talks but that it fell short of Canada’s objectives, and pledged that Canada would match the new U.S. tariffs dollar for dollar to protect Canadian workers and businesses.
U.S. Trade Representative Jamieson Greer said Canada had declined to finalize a deal agreed earlier in the week, accusing Ottawa of introducing new demands and walking back prior commitments. Greer said the U.S. had offered Canada the most favourable treatment of any major trading partner, and pointed to Canada’s continued restrictions on some American goods and services as a further point of contention.
The negotiations, which had intensified since July, had appeared close to a breakthrough earlier in the week, with reports the two sides were discussing cuts to U.S. tariffs on Canadian steel and aluminum to 25% from 50%, and on autos to 15% from 25%, in exchange for Canada lifting provincial restrictions on U.S. alcohol sales. Trump had briefly paused the threatened tariffs mid-week, citing progress toward a deal he described as favourable to both countries.
Ontario Premier Doug Ford said he backed a strong response, calling for Canada to respond “tariff for tariff, dollar for dollar” and urging national unity. The renewed dispute marks the latest downturn in U.S.-Canada trade relations, which have been strained repeatedly since Trump returned to office amid disputes over tariffs, NATO spending and other bilateral issues.
