Carney Announces Retaliatory Tariffs on U.S. Goods To Take Effect on Sept. 8

Prime Minister Mark Carney said Saturday that Canada will impose retaliatory tariffs on U.S. goods starting Sept. 8, matching President Donald Trump’s new 50% duties dollar for dollar after last-ditch trade talks between the two countries collapsed late Friday.

Carney Details Canada’s Response

Speaking to reporters in Ottawa the morning after negotiations broke down, Carney said Canada’s countermeasures will focus on sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, along with goods currently subject to U.S. tariffs imposed under Section 232 of the Trade Expansion Act. He said further details on the specific products affected would be released in the coming days.

Carney told reporters Canada had entered the talks willing to drop its remaining retaliatory tariffs on U.S. steel, aluminum and autos in exchange for reciprocal cuts from Washington and had been prepared to encourage provinces to restore U.S. alcohol to store shelves, the Canadian Press reported. But he said Washington’s final terms went too far, telling reporters, "They asked too much and offered too little." Carney added that Canada’s approach throughout the talks had never been to accept "a deal at any price or on any deadline."

Carney: Talks Fell Apart Over Trade Sovereignty

Carney said U.S. negotiators, in the closing hours of talks, pushed to limit Canada’s ability to pursue trade agreements with other countries and to weaken protections for Canadian language and culture. Asked why Washington would seek to shape Canadian trade policy elsewhere, Carney characterized the move as a power play. He said Ottawa’s broader strategy remains focused on strengthening the domestic economy and diversifying trade beyond the United States, calling it Canada’s "Plan A from the start."

According to Reuters, Carney acknowledged the new tariffs will raise costs and reduce choice for Canadian consumers, but said the country was better off rejecting what he called a bad deal. He pointed to Canada’s economy as a source of resilience heading into the fight, citing job growth and foreign direct investment near two-decade highs.

The political fallout extended quickly beyond Ottawa. Hamilton, Ontario Mayor Andrea Horwath, whose city produces roughly 60% of Canada’s steel output, called the breakdown deeply concerning and urged federal and provincial leaders to stand behind Canadian workers as the uncertainty weighs on manufacturing communities. Ontario Premier Doug Ford had separately pledged his support for a tariff-for-tariff response following Carney’s overnight statement.

What’s Next

The two countries traded roughly $880 billion worth of goods and services last year, and officials on both sides have signaled little appetite for renewed talks in the immediate term. A senior Trump administration official said Friday that Washington had no new negotiations scheduled and was preparing additional measures in the event Canada follows through on retaliation. With Canada’s countermeasures not set to take effect until after Labour Day, both governments have roughly two weeks to determine whether the door to a deal remains open before the tariff fight escalates further.

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