Canada is retaliating against President Trump’s 50% tariffs on Canadian products, threatening a dollar-for-dollar counterattack beginning Sept. 8.
The U.S. imposed tariffs on about $20 billion worth of goods from its northern neighbor following the collapse of trade negotiations. In response, Canadian Prime Minister Mark Carney announced he’s suspending talks and implementing retaliatory tariffs.
“Late last evening I instructed our negotiators to return to Ottawa. We cannot accept what the U.S. has offered, and we will not give what they have asked,” he said in a Saturday statement. “Canada will match the U.S.’ new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses.”
He added that in the coming days, “we will release the details of these new tariff measures, which will come into force the Tuesday after Labor Day.”
Canada’s new tariffs will target steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
Washington “asked too much and offered too little,” Mr. Carney said.
“The new U.S. tariffs are designed to hurt us and divide us. They’re a miscalculation. They’re a miscalculation because Canadians will always take care of each other. We know we’re stronger together,” he said.
The U.S. applies a baseline 10% tariff on Canadian goods generally, separate from the new 50% levy, along with tariffs on specific industries.
Mr. Trump’s new duties on Canada’s goods cover about 5% of annual Canadian exports to the U.S., adding to levies on items like steel, aluminum, autos and lumber.
This 50% tariff follows an earlier hike from 25% to 35% in mid-2025, and this week’s negotiation collapse came after officials signaled a deal was close.
The two countries exchanged roughly $880 billion in goods and services last year, and Canada is America’s second-largest trading partner after Mexico.
The 50% tariffs were originally set to take effect earlier in the week, but Mr. Trump extended the deadline to let talks continue.
Mr. Carney blamed the Trump administration for the failed negotiations, saying “last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”
U.S. Trade Representative Jamieson Greer pointed the finger at Canada, saying it “declined to finalize the trade deal under the terms agreed earlier this week.”
“Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days,” he said in a Friday statement.
Friction between the president and Mr. Carney extends beyond levies, with Mr. Trump floating the idea of Canada becoming the “51st state.”
