In brief
Prime Minister Mark Carney condemned the latest U.S. tariff announcements as a miscalculation and announced Canada will match them dollar‑for‑dollar from September 8. The statement comes after trade talks with President Donald Trump collapsed on Friday night. Carney warned the U.S. asks too much, offering too little, and that Canada will retaliate reluctantly. Carney’s remarks not only signal a firm retaliatory stance but also weaken prospects for a free‑trade pact renewal. The fallout will affect Canadian exports of steel, dairy, appliances and electronics, underscoring mounting trade tensions across North America.
On Saturday morning, Prime Minister Mark Carney delivered a televised address to Canadians, branding the latest U.S. tariff announcements as a "miscalculation" that "hurts and divides us". The statement came after trade negotiations with President Donald Trump collapsed late Friday night.
Carney explained that Canada walked away from a potential trade deal because the U.S. demands would compromise Canadian sovereignty. He added, "They asked too much and they offered too little". He also warned that Canada would match U.S. tariffs dollar‑for‑dollar from September 8, covering steel, dairy, appliances and electronics.
The bargain talks that had been underway for more than a year ended when both sides blamed each other for "last‑minute changes" and "new demands". The U.S. has already imposed 50% tariffs on a range of Canadian goods, in addition to existing duties on steel, aluminium, auto parts and lumber.
Carney’s remarks signal a reluctant but firm retaliatory stance as Canada prepares to release details of its counter‑measures later in the week. The collapse also weakens the outlook for a renewed North‑American Free Trade Agreement, with Canada and Mexico having requested a 16‑year renewal that the U.S. has declined to honour in its current form.
"Right now it isn’t a good sign for us," Carney told reporters, adding that he would investigate the impact on the economy and the broader trade pact.
