Canada prepares dollar-for-dollar tariffs on US goods after talks collapse
Prime Minister Mark Carney confirmed retaliatory measures targeting steel, dairy, appliances and other products will take effect on September 8, matching new 50 percent US levies on roughly $20 billion of Canadian exports.
Ottawa1 min read
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Canada will impose retaliatory tariffs on a range of American goods starting September 8 after trade negotiations with the United States collapsed late on August 21.
Prime Minister Mark Carney announced that Ottawa will match the new US duties dollar for dollar. The American measures, which took effect on August 22, place 50 percent tariffs on about $20 billion of Canadian exports, covering items from hockey equipment and wine to cement and medical supplies. That volume equals roughly 5 percent of Canada's annual shipments to the United States.
Carney said the final US proposals contained last-minute changes that were unfair and uneconomic. He suspended talks and directed Canadian negotiators to return home. The Canadian response will target US steel, dairy products, appliances, agricultural equipment, pulp and paper, and electronics.
Both sides had spent days attempting to lower existing tariffs on steel, aluminium and automobiles. Carney stated that Canada had been prepared to drop some of its own retaliatory measures if Washington substantially reduced its levies, but the terms offered fell short.
No further talks are scheduled. Ontario Premier Doug Ford described the situation in strong terms and suggested Canada could use electricity, critical minerals, oil and potash as leverage. President Donald Trump separately threatened higher tariffs on Canadian cars, trucks and steel from January 2027.
The dispute adds pressure to the broader North American trade relationship and comes as the two countries already maintain tariffs on steel, aluminium, lumber and vehicles.
