Canada is set to impose retaliatory tariffs on a range of US goods from September 8, Prime Minister Mark Carney announced on Saturday, escalating the latest trade dispute between the two North American neighbours.
The move comes after the United States imposed 50% tariffs on around $20 billion worth of Canadian goods. The new US duties followed the collapse of last-minute trade negotiations between Ottawa and Washington.
Carney said Canada would respond with a “dollar-for-dollar” approach, aimed at protecting Canadian workers, farmers, families and businesses from the impact of the US measures.
The Canadian counter-tariffs are expected to cover several sectors, including steel, dairy products, electronics, appliances, agricultural equipment, pulp and paper and other US imports.
Trade Talks Collapse
The latest escalation follows the breakdown of negotiations between the two countries. Carney said Canada could not accept what he described as unfair and economically damaging demands from Washington.
The US tariffs came into effect after the two sides failed to reach a new trade agreement. US Trade Representative Jamieson Greer has indicated that Washington does not currently plan to restart negotiations.
Growing Trade Tensions
The latest measures mark another major escalation in trade tensions between the two long-standing economic partners. Canada is also looking to diversify its trade relationships and reduce its dependence on the US market.
Carney said his government would announce additional measures to support Canadian industries affected by the new tariffs in the coming days.
The dispute could affect businesses and consumers on both sides of the border, particularly in sectors that rely heavily on cross-border trade.
