Canadian Prime Minister Mark Carney has promised to impose tariffs “on a dollar-for-dollar basis” in retaliation after the United States imposed new high tariffs on the country.
Carney addressed Canadians on Saturday, just hours after the United States imposed 50 per cent tariffs on about $20 billion worth of Canadian goods.
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The prime minister promised an “intensive response” to level tariffs on US imports such as steel, dairy products, electronics, agricultural machinery, paper and electronics from September 8.
“We pursued every opportunity to reach an agreement that protects Canadian workers and their families, strengthens our economy, and respects Canada’s sovereignty,” Carney said. “We are reluctantly taking this step.”
Carney’s remarks came after weeks of uncertainty over whether tariffs would be imposed. The latest import duties were first announced in July as part of trade talks between the two countries.
Since the start of his second term, President Trump has sought to ratchet up pressure on Canada as part of increasing U.S. influence in the Western Hemisphere and advancing U.S. priorities.
When President Trump announced the 50% tariffs on July 20, he accused Canada of “discriminatory treatment” in its trade policy. The two neighbors have long been allies and have been each other’s largest trading partners for decades.
But negotiators on both sides sought to prevent President Trump’s latest tariffs from taking effect, achieving an extension from an earlier deadline on Wednesday.
However, three days of lengthy negotiations since then have failed to finalize a trade deal. The revised tariff deadline expired at midnight ET (4 p.m. Japan time).
Carney said Canada had been “pragmatic, patient and persistent,” explaining on Saturday that Canada had withdrawn from the talks because the United States “asked too much and delivered too little.”
He also accused the United States of introducing last-minute demands that undermined negotiations.
“In recent days, the United States has proposed new terms that are uneconomic, unfair, and hurt Canada’s bottom line, calling into question the credibility of any agreement,” Carney said.
When reporters asked for details, Mr. Carney mentioned 11th-hour changes to car imports and restrictions on Canada’s ability to forge new trade alliances.
“In the last hours, the United States introduced efforts to limit its ability to enter into other trade agreements,” Carney argued.
“We are in many ways the partner of choice for countries around the world, and the Americans wanted to limit that. They had language that looked like they wanted to limit that. It’s unacceptable.”
Carney also criticized the shift in the U.S. rationale for imposing cross-border tariffs, pointing to President Trump’s comments citing drug trafficking, television advertising and wildfire smoke as reasons for raising import duties on Canadian products.
Since taking office in 2025, Carney has been at odds with Trump, who returned to the White House for a second term in the same year.
President Trump has repeatedly used broad tariffs as leverage to secure better deals from America’s trading partners. Experts also say his aggressive foreign policy has alienated some longtime allies.
In the face of these tensions, Mr. Carney has advocated for the world’s “middle powers” to work together to counter superpowers such as the United States and China. In his speech on Saturday, he acknowledged Mr. Trump’s destructive influence in world politics.
“Our government understood before many people that the United States would transform all our trade relationships, impose a series of tariffs on our closest allies, and use economic integration as a weapon,” Carney said.
He also suggested that the United States under the Trump administration has a tendency to suddenly change course. “We are aware that signatures may be written in pencil.”
“Unfortunately, in recent days, the gap between our partnership and our competitors is still too wide,” he added.
But the Trump administration is trying to use Canada’s demands as an obstacle to tariff negotiations this week.
By late Friday afternoon, a de-escalation between Ottawa and Washington seemed possible, with President Trump telling reporters that “the deal with Canada is progressing.”
Reports have surfaced that the United States has offered to cut tariffs on aluminum, autos and steel if Canada gives American companies more access to its dairy and timber markets.
But on Saturday, U.S. Trade Representative Jamieson Greer told Fox News that no further talks with Canada were planned. Greer also said the U.S. would “proceed with steps” in response to retaliatory tariffs from its northern neighbor.
“They’ve always had the best contracts and they’ll always get better contracts, but they didn’t want that,” Greer said.
Meanwhile, Mr. Carney said Canada intends to continue strengthening its trade relationships with other countries.
“You can’t control the storms coming out of Washington,” Carney said. “But it is possible to chart a new course by strengthening Canada and diversifying our trade relationships with other countries.”
One reporter asked about Carney’s dark tone: “Why does Mark Carney feel like he’s going to war today? A trade war?”
Mr. Carney answered bluntly: “When you’re attacked, you’re at war. We’re attacked.”
