Carney calls US tariffs a miscalculation as Ottawa prepares dollar-for-dollar retaliation
Canada’s Prime Minister Mark Carney has declared the collapse of trade negotiations with Washington a failure of sovereignty, announcing retaliatory duties on steel, dairy, and electronics to match new 50 per cent US levies.
Canadian Prime Minister Mark Carney has characterised the latest wave of United States tariffs as a "miscalculation" following the abrupt breakdown of bilateral trade negotiations late on Friday. In a national address on Saturday morning, Carney stated that Ottawa withdrew from the agreement to protect its sovereignty, arguing that the American side had "asked too much and offered too little."
The collapse of talks marks a significant shift in the trade relationship, with both nations previously expressing optimism about a resolution earlier in the week. Carney described the new US measures as designed to "hurt and divide" Canada, though he noted that the government is retaliating "reluctantly" to safeguard domestic interests. The Prime Minister’s speech was his first public address since announcing the failure of the deal late on Friday night.
Under the new framework, Canada will implement retaliatory tariffs on a dollar-for-dollar basis starting from 8 September. These counter-measures will target specific sectors, including steel, dairy, appliances, and electronics. Carney indicated that further details regarding the precise list of affected goods and specific rates would be released in the coming days.
The new 50 per cent US tariffs apply to a range of Canadian goods, adding to existing levies already imposed on Canadian steel, aluminium, automobiles, and lumber. According to US Trade Representative Jamieson Greer, the duties affect approximately $20 billion worth of Canadian exports, representing about 5 per cent of total Canadian exports to the US.
The breakdown in negotiations was attributed by both sides to last-minute shifts in position. Carney accused the Americans of making "unfair" and "uneconomic" changes, while US negotiators cited "new demands and walk backs" from the Canadian side on terms that had been previously agreed. These conflicting accounts highlight the institutional friction that has now stalled the agreement.
Donald Trump has yet to comment on the collapse of the talks. As the dispute moves from negotiation to enforcement, the focus shifts to the implementation of the retaliatory measures and the broader impact on cross-border supply chains.
