Ottawa: Canadian Prime Minister Mark Carney has announced that Canada will impose retaliatory tariffs on a dollar-for-dollar basis against the United States. Speaking in Ottawa on Saturday, Carney stated that the new Canadian tariffs will take effect on September 8, targeting American steel, dairy, electronics, and other industries.
During remarks to journalists, Carney said Canada will firmly resist the new tariffs imposed by the US to protect its workers, farmers, families, and businesses.
This Canadian tariff response comes after the US imposed a 50 percent tariff on Canadian goods. Following three days of intensive negotiations between Canada and the US, when the two countries failed to reach an agreement on trade, America implemented the 50 percent tariff. In response, Canada has announced its own tariff measures. With both countries now imposing tariffs, a trade war has officially begun.
The new tariffs imposed by US President Donald Trump have affected numerous sectors, including alcohol, furniture, dairy products, cement, textiles, fishing rods, and hockey equipment. These tariffs cover approximately $20 billion worth of goods—or 5.5 percent of Canada’s total exports to the US.
The Terms Were Unacceptable
Canada’s PM stated that Trump’s administration presented terms that were unreasonable to accept. The conditions were economically unfair, reduced total benefits for Canada, and cast doubt on the credibility of any agreement. He further said these conditions were restricting Canada’s ability to negotiate future trade agreements.
In a 22-minute speech, Carney said that if the US significantly reduces its tariffs, Canada would be willing to lift existing retaliatory tariffs on American aluminum, steel, and motor vehicles. He also stated that Canada is prepared to resume the sale of American alcohol.
We’ve Been Attacked
He went on to say that when you are attacked, you are in a state of war, and we have been attacked—we are now in a state of trade war. Canada’s PM stated that the final terms proposed by the Trump administration were unacceptable. They demanded too much and offered too little. We cannot accept their offer, and we will not meet their demands. We were not willing to compromise Canada’s sovereignty or weaken our key industries.
Carney said the trade war has brought a fundamental change in Canada’s relationship with its southern neighbor. He noted: “We recognized from the beginning that America has changed. We also understand that sometimes, agreements are written in pencil, not in permanent ink. We are not going back to the old relationship.”
Canada’s Heavy Dependence on the US
It’s worth noting that Canada is heavily dependent on the United States. Canada imports 70 percent of its goods from America. With these new tariffs, Canada faces the risk of increased inflation. Yet despite this vulnerability, Canada’s PM has taken a firm stance against America.
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