Canada strikes back as Trump’s 50% tariffs trigger new trade tensions
Prime Minister Mark Carney said Canada will introduce its Canada tariffs from September 8. The decision came after several days of talks between the two countries failed to produce a new trade agreement.
The move has increased concerns about a wider Canada US trade dispute, involving two countries that have long been close economic partners.
Canada prepares to hit US products
Canada plans to place tariffs on several US products, including steel, dairy products, household appliances, agricultural equipment, pulp and paper and electronics.
Carney said the new duties will match the US measures dollar for dollar. He said the Canada tariffs are aimed at protecting Canadian workers, farmers, families and businesses.
The US tariffs affect about $20 billion worth of Canadian exports. Products facing the new US duties include wine, furniture, dairy goods, cement, clothing, fishing equipment and hockey equipment.
“Canada will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney said.
Trade talks fail at final stage
The latest Canada US trade dispute follows days of negotiations that ended without an agreement.
Carney said Washington presented new demands at the last stage of talks. According to him, Canada considered the proposals unfair and harmful to its economic interests.
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He also said some of the US demands could have restricted Canada’s ability to negotiate trade agreements with other countries.
The disagreement could also create uncertainty for the US-Mexico-Canada Agreement, which has played an important role in trade across North America.
US warns of response
US Trade Representative Jamieson Greer said no new talks with Canada were planned at the moment.
He said Washington would move forward with measures in response to the Canadian retaliation.
The White House and other US government offices did not immediately provide further comments on the situation.
Canadian officials, meanwhile, said support measures would be announced for industries affected by the new duties. These measures could remain in place for several years if the dispute continues.
Businesses prepare for impact
The new Canada tariffs could put pressure on industries that depend heavily on exports to the US.
Trade experts have warned that sectors such as softwood lumber and wine could face serious losses. Some companies could reduce production or face job cuts if the tariffs remain for a long time.
Ontario Premier Doug Ford supported Carney’s decision, saying the proposed US agreement would have hurt the province’s auto, steel and manufacturing sectors.
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Vehicle tariffs become major issue
The treatment of larger vehicles was one of the major disagreements during negotiations.
Canada wanted favourable tariff terms for light-duty vehicles to also cover medium and heavy-duty trucks. The US reportedly opposed the request.
Carney said Canadian-made models could become less competitive if the proposed terms were introduced.
