Canadian Prime Minister Mark Carney announced Saturday that Canada will implement retaliatory tariffs on American goods beginning September 8, responding to Washington’s sweeping 50 percent tariffs.
Carney said Canada will “match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families and businesses,” signaling an aggressive posture in the escalating trade dispute.
Canadian Finance Minister Francois-Philippe Champagne confirmed the tariffs will apply to $27.6 billion worth of American imports, structured across rates of 15 percent, 25 percent, and 50 percent.
The targeted goods include steel, dairy products, appliances, agricultural equipment, pulp and paper, and electronics, covering a broad swath of American export industries.
Among the most significant measures, Canada will double its existing tariffs on U.S. steel and aluminum to 50 percent, directly mirroring the rate Washington imposed on Canadian metals.
Carney acknowledged the domestic costs of the response, stressing that his government takes “this step reluctantly” given the real economic implications for Canadian consumers.
“Reluctantly because we recognize that some of these measures will raise costs and reduce choice for Canadians,” Carney said during a Saturday morning press conference, framing the decision as necessary but painful.
The retaliatory package came just days after negotiations between the two countries broke down, with each side blaming the other for the collapse of what had appeared to be a near-complete deal.
President Trump had claimed earlier in the week that an agreement was almost finalized, but Canada suspended negotiations Friday evening, arguing that the U.S. introduced unreasonable demands and “last-minute changes” to the proposed terms.
The Trump administration countered by accusing Ottawa of being responsible for derailing the talks through its own eleventh-hour demands, leaving both governments publicly at odds over who bears responsibility.
Carney also indicated Monday that Canada may pursue more targeted retaliation if Trump follows through on threats to impose new 50 percent tariffs on cars, trucks, auto parts, and steel taking effect on New Year’s Day.
Business groups on both sides of the border have warned that the escalating tit-for-tat measures will create major uncertainty, potentially making cross-border trade prohibitively expensive for smaller sellers and manufacturers.
