OTTAWA/ WASHINGTON: Canadian Prime Minister Mark Carney announced retaliatory tariffs on the United States on Saturday, after walking away from a “bad deal” on trade in a deepening rift between the longtime allies.
Negotiations between the neighboring countries broke down Friday in Washington, putting into force new 50-percent US tariffs impacting about $20 billion worth of goods, or 5.5 percent of Canadian exports to the United States. Impacted products range from hockey sticks to cement.
“You’re at war when you get attacked. We got attacked,” Carney said. US President Donald Trump hit back at Canada on Sunday, saying, “Canada wants the benefits of being a State, without being one!!!”
The Trump administration on Sunday warned that Canada would be “foolish” to think it could win a trade war with the United States, predicting a “devastating” impact on its northern neighbor.
“They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!” Trump added in a post on Truth Social. New Canadian tariffs will notably target the US steel and dairy industries and take effect on September 8. More details would come next week, Carney said.
Trump had previously said Washington “should be able to have a deal with Canada,” citing his “good relationship” with Carney. But on Saturday, Canada’s prime minister said Trump set conditions that were ultimately unacceptable even though earlier talks had been positive.
“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.
“We cannot accept what they’ve offered, and we will not give what they’ve asked.”
US Trade Representative Jamieson Greer told the New York Times on Saturday that the US had offered to reduce its tariffs on steel, aluminum and autos, as well as eliminate a recently imposed tariff on Canadian lumber. Greer said those measures would have given Canada “the most preferential treatment of any trading partner,” according to the Times.
Greer told Fox News on Saturday that Washington was “moving forward with measures that respond to Canadian retaliation.” He said no new talks were planned with Canadian negotiators. A senior US official characterized this week’s talks in Washington as candid and not acrimonious.
View of the Gordie Howe International Bridge during the opening ceremony in Windsor, Ontario.
Significant pressure
Canada has been seeking relief from Trump’s tariffs on autos, steel and aluminum, which have battered the country’s economy, forced job losses and strained what was once an iron-clad trade relationship. The White House had alleged “discriminatory treatment” by Canada against US alcohol, automobile and dairy products in introducing the duties.
They were originally set to take effect on Wednesday before Trump issued a three-day reprieve citing progress in talks. Carney said one reason for collapsing negotiations was US negotiators introducing restrictions at the last minute regarding Canadian trade deals with other countries. He mentioned unacceptable “threats” made against French language rights and Quebec culture by US negotiators referring to Eastern Canada’s French-speaking province.
The escalating trade war was met with anger by Democratic lawmakers and governors from border states including Minnesota, New York and Washington who blamed Trump for sparking chaos that will raise costs for US businesses and families. “Needlessly picking fights with our allies and raising prices here at home. That’s Trump’s economic policy in a nutshell,” New York Governor Kathy Hochul posted on X. Beyond these new tariffs, both countries still need to agree on changes to NAFTA’s successor agreement known as USMCA; which Trump declined to renew as it stands now. Trump’s remarks about making Canada part of America as its 51st state also stirred resentment among Canadians.
Carney has repeatedly stated that relations with America are forever changed now-Canada must look for ways to lessen its dependence since around 70 percent of its exports go southwards currently. “We’ve been under no illusions. We recognized from day one that America has changed,” Carney noted Saturday adding: “We recognize that sometimes its signature was written in pencil.”
Carney spoke with provincial leaders outlining future steps forward together while Ontario Premier Doug Ford urged unity among Canadians stating simply: “Trump can’t be trusted.” Ford added during his press conference: “President Trump is someone who would steal your lunch money.” The Business Roundtable-a group representing leading CEOs across America-warned these fresh tariffs risk increasing expenses for American families while calling for both sides to restart negotiations soon.
US Transportation Secretary Sean Duffy indicated Canada would end up worse off if it engaged in an all-out trade battle against President Donald Trump claiming: “We’re great trading partners right? But Canada gets more advantages trading here than we do there.” He expressed disbelief over Canada’s chances winning such conflicts predicting quickly PM Mark Carney returning back wanting talks again due fallout effects looming large over his nation economically speaking.”“
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