In a speech to Canadians Saturday morning, Prime Minister Mark Carney declared that the U.S. has ‘miscalculated’ by imposing a fresh wave of tariffs aimed at hurting and dividing the two countries. Carney said that the negotiations, which collapsed on Friday night, left Canada with no choice but to defend its sovereignty with counter‑measures.
Carney announced that Canada will match U.S. tariffs dollar‑for‑dollar from 8 September for a range of goods – steel, dairy, appliances and electronics – and that further details would be released shortly. The U.S. has already placed 50 % duties on a variety of Canadian products, a list that grows each week as new sectors are added.
Both sides had been optimistic earlier in the week, but the talks fell apart after each side accused the other of making ‘last‑minute changes’ and offering an unacceptable compromise. U.S. negotiators claimed Canada introduced new demands, while Carney pointed to Canadian walk‑backs that breached earlier agreements.
The clash comes after a year of oscillating talks, intensified by Washington’s deadline that threatened additional tariffs. USA and Canada are also reviewing the USMCA agreement with Mexico, where Canada and Mexico requested a 16‑year renewal that the U.S. declined to accept in its current form.
Carney stressed that the collapse is “certainly not good news” for the North American free‑trade pact, noting that tariffs – a key part of Trump’s trade policy – have raised prices for U.S. consumers while disrupting global markets.
While the U.S. has not yet responded, the Canadian government stands ready to defend its market interests, although the policy could have broad economic repercussions across the hemisphere.
