Canadian Prime Minister Mark Carney announced retaliatory tariffs on the United States on Saturday following the breakdown of trade negotiations. The talks, which took place in Washington, ended without an agreement, leading to the implementation of new 50-percent tariffs on approximately $20 billion worth of goods, representing 5.5 percent of Canadian exports to the US. The affected products include items such as hockey sticks and cement.
Carney stated, "You're at war when you get attacked. We got attacked," referring to the US tariffs. In response, US President Donald Trump criticized Canada, stating that they want the benefits of being a state without actually being one. He also mentioned that Canadian tariffs on US farmers have been excessive.
The new Canadian tariffs will specifically target the US steel and dairy industries and are set to take effect on September 8. Carney indicated that further details would be provided next week. Previously, Trump had expressed optimism about reaching a trade deal with Canada, but Carney described the US's latest proposals as "uneconomic" and "unfair."
US Trade Representative Jamieson Greer noted that the US had offered to reduce tariffs on steel, aluminum, and autos, as well as eliminate a tariff on Canadian lumber, which he claimed would have provided Canada with the most favorable treatment among trading partners. However, no further negotiations are planned following the recent developments.
The trade tensions have drawn criticism from Democratic lawmakers and governors from border states, who argue that the situation will increase costs for US businesses and families. Carney has emphasized the need for Canada to reduce its dependence on the US, which currently accounts for about 70 percent of Canadian exports. Ontario Premier Doug Ford remarked that Trump "can't be trusted," highlighting the strained relations between the two countries.