Canada is set to unveil retaliatory tariffs on U.S. goods Tuesday, answering the 50% American duties that hit roughly $20 billion of Canadian exports after trade talks between the two countries collapsed. Trade minister Dominic LeBlanc confirmed the move, and the dispute traces back to failed negotiations over auto tariffs, streaming content rules and Canada's trade autonomy.
Canada is set to unveil retaliatory tariffs on U.S. goods at a press conference at 11 a.m. ET Tuesday, according to CNBC. The move answers the 50% U.S. tariffs that took effect on roughly $20 billion of Canadian exports after trade talks between Washington and Ottawa broke down.
Trade minister Dominic LeBlanc confirmed the plan on CNBC, saying "we're not waiting by the phone." LeBlanc said Ottawa still believes a deal that benefits both countries is possible but won't hold off retaliating in the meantime.
What talks failed over
Negotiations fell apart in the final hours before a midnight deadline on August 21, Crypto Briefing reported. U.S. Trade Representative Jamieson Greer accused Canada of walking back terms already agreed verbally, while Canadian negotiators pointed to new, harder-line demands introduced by the U.S. side late in the process, according to Crypto Briefing.
The failed agreement would have cut the top tariff rate on Canadian cars and light-duty trucks to 15% from 25%, and lowered tariffs on aluminum and steel to 25% from 50%, Investing.com reported. Talks also stalled over Canadian content rules for streaming platforms and Ottawa's ability to negotiate trade deals with other nations independently, according to Crypto Briefing.
Escalation and the road ahead
President Trump added to the pressure Monday, threatening to raise tariffs on all Canadian cars, trucks and auto parts to 50% starting January 1, 2027, Investing.com reported. Canadian Prime Minister Mark Carney has pledged retaliatory tariffs matching the U.S. measures dollar-for-dollar, according to Crypto Briefing, and no further negotiations are currently scheduled.
LeBlanc said the retaliation shouldn't surprise Washington, since Ottawa had signaled all along that it would act to protect the sectors affected if no deal came together.
Sources: CNBC, Investing.com, Crypto Briefing
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