Prime Minister Mark Carney on Saturday said Canada would impose dollar-for-dollar tariffs on U.S. goods in retaliation for U.S. tariffs on Canadian exports that went into effect early in the morning

Canada's Prime Minister Mark Carney denounced the United States' new tariffs as a "miscalculation" aimed at "hurting and dividing" the two nations, following the collapse of trade talks on Friday night. Carney stated that he refused to compromise Canada's sovereignty during negotiations, feeling that the country was being "attacked" by the US.

Tensions escalated when both sides accused the other of making last-minute changes to the agreement. As a result, Canada will implement a "dollar-for-dollar" match of US tariffs starting September 8, 2026, covering a wide range of goods such as steel, dairy, appliances, and electronics. The US has yet to comment on the matter. Both countries had previously shown optimism about reaching a deal, but negotiations broke down when the parties could not agree on terms.

Canada has retaliated "reluctantly" to protect its interests, with the full extent of its counter-measures yet to be revealed. US trade representative Jamieson Greer confirmed that there were no plans to resume talks, expressing surprise that Canada did not want a better deal. Carney rejected claims that Canada had made last-minute requests, asserting that they had clarified their position throughout the negotiations.