Canada imposes retaliatory tariffs on U.S. steel, dairy and electronics after Washington levies 50 percent duties
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Canada imposes retaliatory tariffs on U.S. steel, dairy and electronics after Washington levies 50 percent duties
US imposes 50% tariffs on 20 billion of Canadian goods after trade talks collapse
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Canada and the United States are locked in an escalating trade dispute after Prime Minister Mark Carney announced retaliatory tariffs on Saturday, following the collapse of last-minute negotiations and Washington’s imposition of 50 percent levies on $20 billion worth of Canadian goods.
The U.S. tariffs, which took effect this weekend, target approximately 5.5 percent of Canadian exports to the U.S., including goods covered under the USMCA free trade agreement such as hockey sticks, wine and cement. Carney, addressing the nation for the first time since talks failed, said Canada would respond “dollar for dollar” with tariffs on U.S. steel, electronics, dairy and other products, set to begin on Sept. 8. “When you are attacked, you are at war,” Carney said, adding that the U.S. terms were “uneconomic, unfair” and undermined the reliability of any potential deal .
U.S. President Donald Trump reacted on Sunday via Truth Social, accusing Canada of seeking “the benefits of being a State, without being one” and claiming Ottawa had long imposed “massive tariffs” on American farmers. “It’s over now,” Trump wrote . Business groups on both sides warned of rising costs and supply chain disruptions. Joshua Bolten, chair of the U.S. Business Roundtable, urged both governments to return to negotiations and eliminate “harmful tariffs,” while Dennis Darby, head of the Canadian Manufacturers & Exporters association, said uncertainty would dampen investment .
The breakdown followed days of intense talks that appeared close to a resolution earlier in the week. Trump had temporarily delayed the tariffs, citing progress toward a “very good” deal, but Carney rejected last-minute U.S. demands as unacceptable. The new measures mark the first time Washington has targeted goods under the USMCA framework, expanding the scope of the dispute beyond traditional trade irritants .
Canada’s retaliation will mirror the U.S. approach, with tariffs applied to sectors including steel, dairy and electronics. Carney emphasized that Canada did not initiate the conflict but would defend its interests. “We cannot accept what they’ve offered, and we will not give what they’ve asked,” he said . Economic ties between the two nations, with Canada as the U.S.’s second-largest trading partner, now face heightened strain as both sides dig in.
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