Canada says will match new US 50% tariffs 'dollar for dollar'

After trade negotiations between Canada and the United States collapsed ahead of an August 21 deadline, Canada announced it will match new US tariffs on an equal dollar-for-dollar basis. Canadian Prime Minister Mark Carney cited the failure to meet Canada's objectives as the reason for the breakdown of talks, leading to the suspension of negotiations and a recall of the team.

In response, the United States imposed 50% tariffs on billions of dollars worth of Canadian goods, including wine, dairy, cement, clothing, and hockey equipment. These new tariffs join existing US measures that affect Canadian steel, aluminum, automobiles, and lumber, further heightening tensions between the two key trading partners.

Carney deemed the latest US changes "unfair" and "uneconomic," casting doubt on the reliability of any potential agreement. He stated that Canada would match the tariffs "dollar for dollar" to safeguard workers and businesses. Ottawa also plans to provide additional support for those impacted by the tariffs, adding to the $25 billion in aid already given.

The US administration attributed the failure to Canada's refusal to finalize the deal on agreed-upon terms, claiming Ottawa introduced new demands or withdrew previous commitments despite US offers of tariff reductions across various sectors. This latest setback in Canada-US trade relations raises concerns for businesses and workers in both countries.