Canada hits back with tariffs as US‑Canada trade talks collapse
Canada’s new tariffs target US steel, dairy and other products, raising the stakes in a widening trade dispute.
Mark Carney, Canada’s prime minister, announced on Saturday that his government will levy new tariffs on a range of United States‑origin goods after Washington rolled out 50 percent duties on about $20 billion of Canadian exports. The American measures, which cover roughly 5.5 percent of Canada’s trade with its southern neighbour, were triggered by a breakdown in negotiations in Washington.
The retaliatory duties will hit US steel, dairy and other sectors, with the first round set to start on 8 September. Analysts say the move could push up prices for Canadian manufacturers that rely on imported inputs and could also raise costs for American consumers buying Canadian products.
In a post on Truth Social, Donald Trump slammed the Canadian response, writing, "Canada wants the benefits of being a State, without being one!!!" He added that Canada had long charged American farmers excessive duties and promised to end the practice.
Jamieson Greer, the US Trade Representative, told the New York Times that Washington had offered to cut its own tariffs on steel, aluminium and autos, and to remove a recently imposed duty on Canadian lumber. Greer said the proposal would have given Canada the most favourable treatment of any trading partner.
Despite the offer, Greer told Fox News that Washington would move forward with measures that respond to Canada’s retaliation, and no fresh talks were scheduled.
Both governments face pressure from domestic constituencies. US governors from border states warned that higher tariffs could raise prices for families, while Canadian officials, including Ontario Premier Doug Ford, urged national unity and warned that reliance on the United States, which accounts for about 70 percent of Canadian exports, must be reduced.
The dispute also hangs over the pending revision of the North American Free Trade Agreement (USMCA). With the current agreement set to expire, any further escalation could complicate negotiations and delay a new deal.
For now, the two sides appear entrenched, and the next few weeks will determine whether the tariffs become a short‑term pressure tactic or a longer‑term shift in North‑American trade relations.