Trade negotiations between the United States and Canada have collapsed, prompting Canadian Prime Minister Mark Carney to announce retaliatory tariffs against $20 billion in American goods, deepening a growing rift between the two close allies.
Canadian Prime Minister Mark Carney vowed "dollar-for-dollar" tariffs in response to the United States' 50% tariffs on $20 billion in Canadian goods after trade negotiations failed to reach a deal. Carney said the new tariffs, set to take effect on September 8, will apply to steel, dairy products, appliances, agricultural equipment, pulp, paper, and electronics.
"In recent days, the United States proposed new terms that were uneconomic, unfair, and undermined the net benefits for Canada," Carney stated. "In short, they asked too much, and they offered too little." US President Donald Trump claimed Canada wanted "the benefits of being a State, without being one," and accused the country of charging American farmers massive tariffs for years.
The collapse came after both sides appeared close to a deal earlier in the week. The United States had considered lowering tariffs on Canadian steel, aluminum, and automobiles, while Canada offered concessions including removing retaliatory measures and restoring alcohol access. Agreement broke down over critical minerals and automotive industry terms. Carney confirmed Canada would never grant the US exclusive access to its mineral resources.
The tariffs mark a significant escalation in trade tensions. Canada also announced additional support measures for workers and businesses affected by the new duties. The United States confirmed no further talks are planned and said it will move forward with additional countermeasures.