Canada to hit US with retaliatory tariffs as trade war escalates

Canada and the United States faced escalating trade tensions as Canada announced it would impose retaliatory tariffs on American goods in response to new duties imposed by the US. After weeks of failed negotiations, Canada's Prime Minister Mark Carney declared on Saturday that his country would impose tariffs on imports from the United States starting September 8, mirroring the 50 percent tariffs introduced by US President Donald Trump on the previous day.

The announcement came after several days of talks that ended without a deal on Friday, raising concerns of further strain between the longstanding allies and allies, and cast doubt on the future of the United States-Mexico-Canada Agreement (USMCA).

Carney emphasized that Canada would match the US tariffs dollar for dollar, stating that the new measures would target sectors such as steel, dairy products, home appliances, agricultural equipment, pulp and paper, and electronics, as well as products already subject to what he called unjustified tariffs. The Canadian government pledged to announce further details of the new measures in the coming days.

Trade experts warned that the new tariffs could negatively impact vulnerable sectors such as softwood lumber and wine, potentially leading to job losses and business closures. The tariffs affected Canadian exports worth about $20 billion across the US border and did not grant Canadian products exemptions under the USMCA, which had safeguarded most Canadian exports to the US over the past 18 months.

Canadian Premier Doug Ford supported Carney's decision not to accept the proposed deal, calling it a "bad deal" for Ontario and the automotive and steel sectors.