Canada has announced it will impose tariffs on certain American goods in response to new 50% levies placed by President Donald Trump on Canadian exports. Prime Minister Mark Carney said the move would take effect on September 8 and match Washington’s new duties dollar for dollar.
The two countries failed to reach an agreement after three days of intense negotiations, with each side accusing the other of derailing talks, according to telegraphindia.com. The breakdown has complicated efforts to finalize a US-Mexico-Canada free-trade pact that governs much of the trade between these nations.
Trump’s new tariffs target industries such as wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment. These duties cover approximately $20 billion in Canadian exports to the United States and do not exempt Canadian goods under the existing trade deal.
Carney said Canada would respond with counter-tariffs aimed at protecting its workers, farmers, families, and businesses. He described the situation as a form of attack and compared it to being in war, saying Canada had been attacked.
Carney is one of the few global leaders to retaliate against US tariffs and has pledged to build new trade and military alliances. Despite Canada’s heavy reliance on the United States for nearly 70% of its exports, Carney said Ottawa would not back down from this confrontation.
Canadian officials accused Washington of using the new tariffs to harm and divide Canada rather than resolve trade issues, according to a report from anews.com.tr. The retaliatory measures will include levies on steel, dairy, appliances, agricultural equipment, pulp, paper and electronics.
Carney also stated that Canada would never give up exclusive access to its critical minerals. Ottawa suspended trade talks with Washington after the US made demands that Canada could not accept.
The United States, in turn, claimed Canada walked away from a nearly completed deal that would have reduced tariffs on Canadian exports. US Trade Representative Jamieson Greer said Canada rejected an offer that would have lowered duties on steel, autos and lumber. Carney said the final US proposal went beyond what Canada could accept, even after earlier progress in negotiations, ibtimes.sg reported.
He criticized the terms as uneconomic and unfair, calling into question whether any deal would benefit Canada. The US had reportedly been considering halving its 50% steel and aluminum tariffs and cutting its 25% tariff on Canadian autos to 15%.
Greer said Washington’s offer to cut tariffs on steel, autos and lumber represented ‘the best deal’ Canada could get, instead saying Canada had refused what would have been an improved arrangement. Trade groups and provincial leaders warned that this trade conflict could severely impact vulnerable Canadian industries.
Ontario Premier Doug Ford supported Carney’s decision to walk away from the agreement on the table. Ottawa plans to release the specific tariff lines and rates for its retaliatory actions in the coming days before they take effect.
These new duties will not be exempted under the USMCA trade agreement that governs most trade between the three countries. Carney said Canada cannot control what happens when Washington makes these moves.
IMAGE: DAVOS/SWITZERLAND, 28JAN12 – Mark J. Carney, Governor of the Bank of Canada; Foundation Board Member; Global Agenda Council on Systemic Financial Resilience, is captured during the session ‘Beyond Basel: Financial Institution Regulation’ at the Annual Meeting 2012 of the World Economic Forum at the congress center in Davos, Switzerland, January 28, 2012.. Photo: World Economic Forum / Wikimedia, taken 2012-09-17, CC BY-SA 2.0