Canadian Prime Minister Mark Carney attends the announcement of a Quebec-Newfoundland hydro agreement in St. John’s, Canada, August 17, 2026. REUTERS
Canada’s Prime Minister Mark Carney said on Saturday that starting September 8, his administration would impose tariffs on imports from the United States across a raft of sectors in retaliation for President Donald Trump’s new 50% tariffs that came into effect at midnight.
After days of intense negotiations, the two countries failed to reach a trade deal late on Friday, worsening an already delicate relationship between the two long-term trade partners and allies and complicating the future of a highly successful continental free trade pact called the US-Mexico-Canada agreement.
Trump’s new tariffs hit a slew of sectors, including wine, furniture, dairy products, cement, clothing, fishing rods, hockey equipment and cover some $20 billion of Canadian exports south of the border. These duties do not give exemption to Canadian products under the USMCA, which have shielded most of Canadian exports to the US in the last 18 months.
Read More: US hits Canadian goods with 50% tariffs after trade talks fail
“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney said at a news conference.
These retaliatory tariffs will hit sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics and will also include products currently subject to the unjustified Section 232 and 338 tariffs, Carney said in a spirited speech from the Parliament building in Ottawa.
“We cannot accept what they have offered, and we will not give what they have asked,” Carney said.
Trump had expressed hope that a deal with Canada could happen on Friday.
But Carney said the US administration’s last-minute demands halted progress.
“In recent days, the US proposed new terms that were uneconomic, unfair, and undermined the net benefits to Canada, calling into question the reliability of any deal,” he said, adding that these demands included curtailing Canada’s ability to forge new trade deals.
Carney said Canada would announce support measures next week for industries that are hit by the new US duties, alongside new tariffs on the US.
‘Bad deal’
The new US tariffs cover around 5% of Canada’s exports to the US. They could expose some vulnerable industries such as softwood lumber and wine to severe damage and lead to job losses and business closures, trade experts have said.
“We will be mobilising our network of businesses in all regions and all sectors to brace for impact and make the best of a bad situation,” said Candace Laing, CEO of the Canadian Chamber of Commerce.
Ontario Premier Doug Ford, one of the most vocal opponents of US tariffs, supported Carney’s decision to retaliate.
“I’m glad he didn’t sign that deal because it was a bad deal. It was a bad deal for Ontario. It was a bad deal for the auto sector, the steel sector, and manufacturing sector,” Ford told reporters on Saturday.
US Trade Representative Jamieson Greer told Fox News on Saturday that no new talks are planned with Canada.
“We’re moving forward with measures that respond to Canadian retaliation,” Greer said. “They’ve always had the best deal, and they still would have an even better deal, but they didn’t want that.”














