Canada Retaliates Against New U.S. Tariffs with Matching Duties

Canadian Prime Minister Mark Carney labeled the new U.S. tariffs on Canadian goods as “a miscalculation” following the collapse of trade negotiations late Friday night. The tariffs, set at 50%, took effect at midnight and impact approximately $20 billion worth of U.S. imports from Canada, including items like hockey sticks and building materials.

Carney attributed the breakdown to the Trump administration's "uneconomic" and "unfair" demands, stating that the U.S. proposed terms that undermined the benefits for Canada. He announced the suspension of trade negotiations and directed Canadian negotiators to return to Ottawa.

Carney confirmed that Canada would retaliate with matching tariffs on U.S. goods, focusing on sectors such as steel, dairy, and electronics, effective September 8. He expressed gratitude to the Canadian negotiators for their efforts but emphasized the need to reject what he deemed a "bad deal." The failure to reach an agreement followed nearly two weeks of intense discussions, which had initially seemed promising.