In brief
Prime Minister Mark Carney announced that the United States’ application of new tariffs on Canadian goods constitutes a strategic miscalculation aimed at hurting and dividing Canada. Having walked away from a proposed deal, Carney criticised the U.S. for demanding excessive concessions while offering limited reciprocation. Canada will retaliate by matching U.S. tariffs dollar‑for‑dollar from 8 September across areas such as steel, dairy, appliances and electronics. The collapse underscores the fragility of North‑American trade negotiations and threatens the renewal of the USMCA agreement.
Canada’s Prime Minister Mark Carney has called the United States’ new tariffs a “miscalculation” intended to hurt and divide Canada, after trade talks collapsed on Friday night.
Carney said he walked away from a deal because he was not prepared to compromise Canada’s sovereignty.
“They asked too much and they offered too little,” he told Canadians on Saturday morning.
On Thursday, Canada announced it would match US tariffs “dollar‑for‑dollar” from 8 September, covering steel, dairy, appliances and electronics.
Both sides were optimistic earlier this week, but Friday night negotiations broke down when each side blamed the other for last‑minute changes.
US tariffs will now be set at 50% on a range of Canadian goods, adding to existing duties on steel, aluminium, cars and lumber.
Carney said Canada’s retaliation is “reluctant” and details of the counter‑measures will be released soon.
The talks ended after more than a year of intermittent negotiations, driven by a US deadline to reach a deal before new tariffs take effect. Canada and Mexico had jointly requested a 16‑year renewal of the USMCA agreement, but the US declined to renew it in its current form.
Carney also warned that a collapse would hurt the North American free trade pact, and noted that tariffs have reportedly raised prices for American consumers and disrupted global supply chains.
