Canada has warned of retaliatory tariffs in response to the United States’ imposition of 50% duties on nearly $28 billion worth of Canadian goods. Prime Minister Mark Carney announced the threat hours after the U.S. Moved forward with the tariffs, which took effect as trade talks collapsed. The new tariffs, which will be applied dollar-for-dollar, are expected to hit key Canadian exports such as lumber, steel, and automotive products.
Carney described the U.S. Actions as a “power play” and claimed the last-minute demands during negotiations threatened Canadian sovereignty. He also criticized the U.S. For seeking control over Canadian foreign trade and easing protections for the French language. These demands, he said, were unacceptable and led to Canada walking away from the negotiating table.
The retaliatory tariffs are set to take effect the Tuesday after Labor Day, according to Carney. The move comes as tensions between the two nations escalate, with both sides accusing each other of launching a trade war. The impact of the tariffs is expected to be significant, particularly for Canadian businesses already struggling with high costs and market pressures.
The situation highlights the growing strain in the economic relationship between Canada and the U.S. With both nations now taking firm stances in response to perceived unfair trade practices.
