The United States has imposed additional 50 per cent tariffs on a range of Canadian products after trade negotiations between the two countries broke down.
Canada has responded by announcing retaliatory tariffs from September 8, escalating tensions between two of North America’s largest trading partners.
The US tariffs, which took effect on Saturday, affect about $20 billion worth of Canadian exports, including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment.
The collapse came after negotiators from both sides spent the week trying to reach an agreement, with officials repeatedly suggesting that a deal was within reach.
US President Donald Trump had postponed an earlier tariff deadline on Wednesday, saying an agreement was close to being finalised.
Canada’s Trade Minister Dominic LeBlanc also said on Thursday that the two countries were “very close” to a deal.
However, the negotiations ultimately failed, with Washington and Ottawa blaming each other for the breakdown.
US Trade Representative Jamieson Greer said Canada had declined to finalise a trade agreement under terms that had been agreed earlier in the week.
But Canadian Prime Minister Mark Carney said the final US proposals contained last-minute changes that were “unfair” and “uneconomic”.
Speaking at a news conference in Ottawa on Saturday, Carney said the US demands had gone beyond what Canada could accept.
“They asked too much and offered too little,” Carney said.
He said Canada had been prepared to remove its remaining retaliatory tariffs on US steel, aluminium and automobiles if Washington reduced its own tariffs.
Instead, Carney announced that Canada would introduce retaliatory measures from September 8, targeting sectors including steel, dairy, agricultural equipment, and pulp and paper.
He said further details would be announced in the coming days, adding that the measures were expected to be applied on a “dollar for dollar” basis.
Carney also stressed the importance of Canada’s energy exports to the US, saying, “Canada fuels American growth,” while warning that Washington would not want Canada to halt energy supplies.
Trump, meanwhile, criticised Canada’s trade policies, accusing the country of benefiting from its relationship with the US while imposing tariffs on American farmers.
The escalating dispute has also drawn criticism within the US, with Democratic Senate Minority Leader Chuck Schumer warning that the tariffs would increase costs for American households.
Republican Senator Susan Collins of Maine also raised concerns about the impact of the tariffs on her state, noting that Maine imports about $2 billion worth of non-petroleum products from Canada annually.
She urged the Trump administration to consider the effect on businesses, communities and families and return to negotiations with Ottawa.
Business Roundtable CEO Joshua Bolten similarly warned that the new tariffs and Canadian retaliation could increase costs for US businesses and consumers, disrupt supply chains and strain the economic relationship between the two countries.
Despite the breakdown, Greer said there were currently no plans for fresh negotiations with Canada.
The latest tariffs were authorised under Section 338 of the US Tariff Act of 1930, which allows the president to impose tariffs of up to 50 per cent on goods from countries found to discriminate against US products.
The provision had not been used since 1949.
The dispute adds to already strained US-Canada relations, with the two countries also facing uncertainty over their trilateral trade framework with Mexico, known as the USMCA.
The agreement was not renewed in July amid concerns over US trade deficits, further complicating efforts to maintain a stable North American trading relationship.
Boluwatife Enome
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