Canadian PM slams trade 'war' launched by US

Canadian Prime Minister Mark Carney harshly criticized what he described as a trade war initiated by the United States following their inability to reach an agreement. This resulted in the implementation of steep US tariffs on Canadian goods. Mr. Carney informed reporters that the United States had declared it would impose 50% tariffs on certain imports from Canada.

A senior US official stated that Section 338 tariffs on approximately $20 billion worth of Canadian goods would take effect just after midnight. In response, Mr. Carney suspended trade negotiations and promised to retaliate dollar for dollar, with Canadian tariffs set to begin on September 8. The US had demanded that Canada impose tariffs on other countries in specific sectors.

The decision to impose tariffs came after three days of talks between Canada's Trade Minister Dominic LeBlanc and US Trade Representative Jamie Greer. Mr. Carney cited the US's last-minute changes as unfair, uneconomic, and casting doubt on the reliability of any deal. Although the new measures impact a small portion of Canadian exports, they exacerbate existing US tariffs on steel, lumber, and automobiles, which have harmed Canada's economy, caused job losses, and strained their once-strong trade relationship.

The tariffs could undermine Canada's fragile economic recovery and affect their future negotiations for a free-trade pact. US President Donald Trump had previously expressed a desire for a deal with Canada, praising his strong relationship with Prime Minister Carney. However, he threatened additional 50% duties on Canadian products by Wednesday, citing significant progress in talks.

Canadian regional leaders have expressed varying reactions to the US's retaliatory measures, with some provinces restocking US alcohol while others, like Quebec's Premier Christine Frechette, requested time to evaluate the situation.