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Canada has announced fresh retaliatory tariffs against the United States after trade negotiations between the two longtime allies collapsed, deepening tensions between the neighbouring countries.
Canadian Prime Minister Mark Carney announced the measures on Saturday, saying Ottawa had walked away from what he described as an unacceptable trade deal proposed by Washington.
The breakdown in negotiations on Friday triggered new 50 percent US tariffs affecting about $20 billion worth of Canadian goods. The products covered represent roughly 5.5 percent of Canada’s exports to the United States.
“You’re at war when you get attacked. We got attacked,” Carney said.
The new Canadian tariffs will target several American industries, including steel and dairy, and are expected to take effect on September 8. Carney said further details of the retaliatory measures would be announced next week.
US President Donald Trump responded sharply on Sunday, accusing Canada of seeking the advantages of being a US state without actually becoming one.
“Canada wants the benefits of being a State, without being one!!!” Trump wrote on Truth Social.
He also accused Canada of imposing heavy tariffs on American farmers over the years, adding, “No more!!!”
The latest escalation comes despite earlier indications that both sides were optimistic about reaching an agreement. Trump had previously said Washington should be able to strike a deal with Canada, pointing to his “good relationship” with Carney.
However, Carney said the situation changed in recent days after the US presented new terms that Ottawa considered unacceptable.
“In recent days, the United States proposed new terms that were uneconomic, unfair and undermined the net benefits for Canada, and called into question the reliability of any deal,” Carney said in Ottawa.
US Trade Representative Jamieson Greer offered a different account of the negotiations. Speaking to The New York Times, Greer said the US had offered to lower tariffs on Canadian steel, aluminum and automobiles while also removing a recently imposed tariff on Canadian lumber.
According to Greer, the proposed concessions would have given Canada “the most preferential treatment of any trading partner.”
Greer later told Fox News that Washington was preparing further measures in response to Canada’s retaliation and said there were currently no plans for another round of negotiations with Canadian officials.
Despite the sharp public statements from both governments, a senior US official described the latest talks in Washington as frank but not hostile.
With new tariffs now taking effect and both sides digging in, concerns are growing that the dispute could further disrupt trade between two of the world’s most closely connected economies.
