Trade tensions escalate as Canada vows tariffs in response to US duties

Trade relations between Canada and the United States have entered a new phase of tension after intensive negotiations between the two countries failed to yield a trade agreement, prompting Ottawa to announce its readiness to respond to new US tariffs by imposing similar duties on a wide range of American products.

Canadian Prime Minister Mark Carney said on Saturday that his country will impose tariffs on imports from the United States starting September 8, in response to new tariffs imposed by US President Donald Trump at a rate of 50 percent, which took effect at midnight.

The announcement followed several days of negotiations that ended late Friday without a deal, raising the prospect of further strain between the long-standing trade partners and allies, and casting doubt on the future of the United States-Mexico-Canada Agreement (USMCA).

Canada to respond in kind

Carney stressed that Canada would match the US tariffs dollar for dollar, saying at a press conference: "Canada will respond to the new tariffs imposed by Washington with equivalent measures, dollar for dollar, to protect Canadian workers, farmers, families, and businesses."

The prime minister explained in a speech from Parliament in Ottawa that the new measures would target sectors including steel, dairy products, home appliances, agricultural equipment, pulp and paper, and electronics, in addition to products currently subject to what he described as unjustified tariffs.

Carney added that the Canadian government would announce details of the new measures in the coming days.

He said: "We cannot accept what they have offered, and we will not provide what they have demanded."

US demands halted negotiations

Trump had expressed hope on Friday for reaching a deal with Canada, but Carney said new demands from the US administration at the last minute stalled progress in the talks.

He explained that the United States had proposed new conditions in recent days, which he described as "uneconomic and unfair," saying they undermined the net benefits Canada could gain and raised questions about the reliability of any agreement.

Carney added that these demands included restricting Canada's ability to enter into new trade agreements.

He said the Canadian government would announce measures next week to support sectors affected by the new US tariffs, coinciding with the imposition of new duties on American products.

Meanwhile, US Trade Representative Jamieson Greer told Fox News on Saturday that no new talks are scheduled with Canada.

He added that the United States is moving forward with measures in response to Canada's actions, noting that Canada has always enjoyed the best deal and could have secured an even better one, but chose not to.

Tariffs target Canadian sectors

The new tariffs imposed by Trump cover a wide range of sectors, including wine, furniture, dairy products, cement, clothing, fishing and hockey equipment.

These tariffs affect Canadian exports worth about $20 billion across the southern border and do not grant Canadian products exemptions under the USMCA, which had protected most Canadian exports to the US over the past 18 months.

Although the new US tariffs impact only about 5 percent of Canada's exports to the United States, trade experts warn they could cause significant harm to vulnerable sectors such as softwood lumber and wine, with potential job losses and business closures.

Candice Laing, CEO of the Canadian Chamber of Commerce, said the chamber would mobilize its network of affiliated businesses across regions and sectors to address the fallout from these developments and maximize any possible benefits.

Support for Carney's decision

Doug Ford, Premier of Ontario and a leading opponent of US tariffs, backed Carney's decision not to accept the proposed deal and to respond to the US measures.

Ford told reporters on Saturday he was pleased Carney did not sign the agreement, describing it as a "bad deal" for Ontario and for the automotive and steel sectors.