Canada Retaliates Against US as Trade Negotiations Break Down

Canada is set to impose retaliatory tariffs on US goods after Prime Minister Mark Carney walked away from trade negotiations with Washington, saying the terms proposed by President Donald Trump’s administration were unfair and unacceptable.

The announcement on Saturday came after talks between the two countries collapsed in Washington on Friday.

As a result, new US tariffs of 50 percent on about $20 billion worth of Canadian goods have come into force. The products affected represent approximately 5.5 percent of Canadian exports to the United States and include goods such as hockey sticks and cement.

Trump had earlier expressed optimism that the two countries could reach an agreement, saying Washington “should be able to have a deal with Canada” and referring to his “good relationship” with Carney.

But Carney said the negotiations had reached an impasse because of the demands from the United States.

“We believed earlier this week that we were moving towards a mutually beneficial agreement,” he said.

The Canadian leader said the US subsequently presented terms that were “uneconomic, unfair” and threatened the benefits Canada expected from any agreement.

“In short, they asked too much and they offered too little,” Carney said.

He added: “We cannot accept what they’ve offered, and we will not give what they’ve asked.”

Carney also accused Washington of starting a trade conflict, saying: “You’re at war when you get attacked. We got attacked.”

New Canadian Tariffs Begin September 8

The retaliatory Canadian measures will particularly affect US steel and dairy industries and are scheduled to take effect on September 8.

Carney said additional information on the tariffs would be released next week.

US Trade Representative Jamieson Greer said Washington had offered “significant tariff reductions on steel, aluminum, autos and lumber” if Canada agreed to make concessions.

A senior US official said the negotiations had been frank but not hostile and confirmed that no additional meetings had been scheduled.

Trade Dispute Puts More Pressure on Economy

Canada has been pushing for the removal or reduction of US tariffs on its automobiles, steel and aluminum exports. The measures have placed pressure on the Canadian economy, contributed to job losses and strained relations between the two countries.

Canadian officials spent the week in Washington attempting to resolve several outstanding trade disputes.

The White House has accused Canada of “discriminatory treatment” of American alcohol, automobile and dairy products.

Trump had delayed the latest US tariffs by three days after initially scheduling them for Wednesday, citing progress in negotiations.

However, with the talks now stalled, trade lawyer and former US commerce official Ryan Majerus warned that both sides would face increasing pressure to reach a compromise.

“Both sides will face significant pressure in the coming days to find an off-ramp,” Majerus told AFP.

Beyond the latest tariff measures, Washington and Ottawa must also negotiate changes to the USMCA, the North American trade agreement that Trump has declined to renew in its current form.

The broader relationship has been further strained by Trump’s repeated threats or suggestions that Canada could become the 51st US state.

Carney has maintained that Canada must reduce its economic dependence on the United States, which currently receives roughly 70 percent of Canadian exports.

“We’ve been under no illusions. We recognized from the start that America has changed,” Carney said on Saturday.

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