Canada will impose retaliatory tariffs on a range of U.S. sectors starting September 8, Prime Minister Mark Carney announced, after trade talks with Washington collapsed without a deal. The move responds to new 50% U.S. tariffs that took effect at midnight and hit roughly $20 billion of Canadian exports.
Canada's Prime Minister Mark Carney said Saturday that Canada would impose tariffs starting September 8 on imports from the United States, retaliating against President Donald Trump's new 50% tariffs. The two countries failed to reach a trade deal after days of negotiations, deepening strain between the longtime trade partners and complicating the future of the U.S.-Mexico-Canada Agreement.
New U.S. tariffs bypass the USMCA
The fresh U.S. duties took effect at midnight and hit sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment. Together, these cover about $20 billion of Canadian exports to the U.S. Unlike the past 18 months, the duties do not exempt Canadian products under the USMCA, which had previously shielded most Canadian exports.
Carney said: "Canada will match Washington's new tariffs dollar for dollar", adding that the retaliation aims to protect Canadian workers, farmers, families and businesses. His government's countermeasures will target U.S. steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, alongside sectors the U.S. had previously targeted in Canada. Ottawa will release details over the next several days.
Talks broke down over last-minute U.S. demands
Trump had expected a deal to close Friday, but Carney said Washington's late demands stalled progress, including terms that would have curtailed Canada's ability to forge new trade deals. Carney will also announce support measures next week for industries hit by the new U.S. duties.
The new U.S. tariffs cover around 5% of Canada's exports to the U.S., but trade experts say vulnerable industries such as softwood lumber and wine could face severe damage, job losses and business closures. Candace Laing, CEO of the Canadian Chamber of Commerce, said businesses across all regions and sectors are bracing for impact. Ontario Premier Doug Ford backed Carney's decision, arguing the rejected deal would have hurt the province's auto, steel and manufacturing sectors.
U.S. Trade Representative Jamieson Greer said no new talks with Canada are currently planned, telling Fox News that Washington is moving forward with measures responding to Canada's retaliation.
Source: Investing.com
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