Ottawa announces dollar-for-dollar duties on American goods after Washington imposes 50% tariffs on Canadian imports.
OTTAWA: Canadian Prime Minister Mark Carney has announced that Ottawa’s “dollar-for-dollar” retaliatory tariffs on US$20 billion worth of American goods will take effect on September 8, following the breakdown of trade negotiations with the United States.
In a nationally televised address on Saturday, Carney outlined Canada’s response after the United States imposed 50% tariffs on US$20 billion of Canadian goods, effective shortly after midnight on Saturday (0400 GMT).
The Canadian counter-tariffs will cover a broad range of American products, including dairy, steel, appliances, pulp and paper, and electronics, the prime minister said.
Carney said the two countries had been close to reaching a mutually beneficial agreement earlier in the week, but last-minute changes proposed by the US side were “unfair” and “uneconomic” and raised questions about the reliability of any future deal.
Canada criticises US trade policy
The Canadian prime minister also criticised what he described as repeated US disregard for existing free trade agreements, including the Canada-United States-Mexico Agreement (CUSMA), warning that this could undermine efforts to renew the pact.
The dispute comes as Canada, the United States and Mexico face negotiations over the future of CUSMA, which replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020.
The United States has already begun formal discussions with Mexico to revise the agreement, while negotiations with Canada have yet to begin.
Asked why Canada was entering a trade dispute with its largest trading partner, Carney responded: “Because we were attacked.”
Carney highlights Canada’s economic resilience
Despite escalating tensions, Carney expressed confidence in Canada’s economic resilience.
He said Canada was creating jobs at four times the rate of the United States and that foreign direct investment had reached a 20-year high.
“Canada is becoming stronger and less dependent on America,” he said.
The planned retaliation marks a significant escalation in trade tensions between the two countries and could increase costs for businesses and consumers while adding uncertainty to cross-border supply chains.