Canadian Prime Minister Mark Carney said on Saturday that Canada will impose customs duties on select U.S. imports in response to new 50% tariffs levied by U.S. President Donald Trump, following the collapse of trade talks between the two neighboring countries.
اضافة اعلان
The tariffs on U.S. imports—including steel and electronics—which will take effect on September 8, mark a further deterioration in relations between the long-standing allies and trading partners.
The two nations failed to reach a trade agreement late Friday, with each side blaming the other for derailing three days of intensive negotiations. This breakdown complicates the future of the United States-Mexico-Canada Agreement (USMCA).
Trump's new tariffs target a wide range of sectors such as wine, furniture, dairy products, cement, apparel, and hunting and hockey equipment, covering roughly $20 billion worth of Canadian exports across the southern border. These tariffs grant no exemption for Canadian products under the USMCA, which had shielded most Canadian exports to the U.S. over the past 18 months.
"Canada will respond to the new tariffs imposed by Washington with an equivalent, dollar-for-dollar value to protect Canadian workers, farmers, families, and businesses," Carney said during a press conference.
Asked whether Canada was engaged in a trade war, he added: "You are in a war when you are attacked. We have been attacked."
Carney is among the few world leaders to retaliate against U.S. tariffs, pledging to establish new trade and military alliances despite Canada's reliance on the United States for nearly 70% of its exports.
U.S. Trade Representative Jamieson Greer characterized the dispute as a "missed opportunity for Canada to partner with the United States," confirming there are no plans for new talks with Canada.
"We are moving forward with measures to respond to Canadian actions... Canada has always enjoyed the best deal, and could still have had a better deal, but they didn't want it," Greer told Fox News.
Neither the White House, the office of the U.S. Commerce Secretary, nor the office of the U.S. Trade Representative immediately responded to requests for comment.
In a speech delivered from Parliament Hill in Ottawa, Carney noted that the tariffs would affect sectors such as steel, dairy products, household appliances, agricultural equipment, pulp and paper, and electronics, and would also encompass products currently subject to unjustified tariffs.
Carney stated that the government will announce details in the coming days.
"We cannot accept what they offered, and we will not deliver what they requested," he added.
Trump had expressed hope for reaching an agreement with Canada on Friday.
However, Carney said last-minute demands from the U.S. administration halted progress.
"In the last few days, the United States proposed new non-economic, unfair conditions that undermined Canada's net benefits, raising doubts about the reliability of any agreement," he said, adding that these demands included restricting Canada's ability to enter into new trade deals.
Carney continued that Canada will announce support measures next week for sectors affected by the new U.S. tariffs, alongside the implementation of new duties on the United States.
Points of Contention
Although the new U.S. tariffs cover only about 5% of Canada's exports to the United States, trade experts warn they could inflict severe damage on vulnerable sectors such as softwood lumber and wine, potentially leading to job losses and business closures.
"We will mobilize our business network across all regions and sectors in preparation to face the impacts and make the most of these adverse circumstances," said Candace Laing, CEO of the Canadian Chamber of Commerce.
Ontario Premier Doug Ford, a prominent opponent of the U.S. tariffs, voiced support for Carney's decision to retaliate.
"I am glad he did not sign that agreement because it was bad. It was a bad deal for Ontario... and for the automotive and steel sectors," Ford told reporters on Saturday.
Reuters
