Canada will impose retaliatory tariffs on a range of US products in response to President Donald Trump’s 50% tariffs on Canadian goods, Prime Minister Mark Carney announced Saturday.
Speaking at a news conference in Ottawa, Carney said the new Canadian tariffs would take effect on September 8 and cover products including US steel, electronics and a range of other goods.
He said the measures were necessary to protect Canadian workers, farmers, families and businesses from the impact of US tariffs.
“We cannot accept what they have proposed, and we will not give them what they have asked for,” Carney said, stressing that Canada had not sought a trade war but had been left with little choice but to respond in order to protect its economy and citizens.
Negotiations between the two countries over a trade agreement continued until late Friday but failed to produce a breakthrough. Trump subsequently imposed the new 50% tariffs on Canadian products, escalating tensions between the long-standing trading partners and allies and raising fresh uncertainty over the future of the free-trade framework linking the United States, Canada and Mexico.
Trump’s latest tariffs cover Canadian products including wine, furniture, dairy goods, cement, clothing, fishing equipment and hockey equipment. The measures are expected to affect around $20 billion worth of Canadian exports.
For the past 18 months, most Canadian products had enjoyed tariff-free access to the US market under the existing trade arrangement.
Canada’s retaliatory measures will target a broad range of US goods, including steel, dairy products, household items, agricultural machinery, pulp and paper, and electronics. Carney said details of the new tariff list would be released in the coming days.
Canada remains heavily dependent on the US market, with roughly 70% of its total exports destined for the United States. Despite that dependence, Ottawa has taken a firm stance against the Trump administration’s tariff policies.
US Trade Representative Jamieson Greer said Washington currently had no plans to resume negotiations with Canada. He said the Canadian response had prompted the United States to consider an appropriate countermeasure.
Carney said one of the main reasons the trade negotiations collapsed was a set of new conditions presented by the United States at the last minute. He described the demands as economically unreasonable and unfair to Canada, including proposals that would have restricted Ottawa’s ability to negotiate future trade agreements.
The latest US tariffs are expected to directly affect around 5% of Canadian exports. Trade experts have warned that sectors such as softwood lumber and wine could face significant losses, potentially leading to job cuts and business closures.
Carney said the government would announce a support package for affected industries next week and indicated that assistance could continue for several years if necessary.
Ontario Premier Doug Ford also backed Carney’s decision, saying the US trade proposal would have harmed Ontario’s automotive, steel and manufacturing sectors.
Automobile tariffs were among the most contentious issues in the trade negotiations. Canada sought to extend preferential tariff treatment proposed for light vehicles to medium- and heavy-duty trucks, but the United States rejected the request.
Carney said accepting the US proposal would have excluded Canadian-made Ford F-350, F-450 and F-550 trucks, as well as certain General Motors Silverado models, from the benefits of the agreement. He warned that this could have put Canada’s auto manufacturing industry at a competitive disadvantage.
Carney also alleged that some US proposals could have affected Canada’s culture, language and sovereignty, although he did not provide further details.
Carney was elected last year after campaigning on a pledge to take a firm position in trade negotiations with Trump. Several public opinion polls have also indicated that most Canadians oppose making major concessions to the United States on trade.
Conservative Party leader Pierre Poilievre said Canadian jobs and businesses were facing unfair pressure and called on Canadians to remain united in confronting the situation.
Source: Reuters