Canadian Prime Minister Mark Carney has accused the United States of launching a trade “war” against Canada after high-stakes negotiations between the two countries broke down, saying, “We got attacked.” Carney said Washington's proposed trade terms were “uneconomic” and “unfair” and could not be accepted by Canada.
Following the collapse of negotiations, the US imposed 50% tariffs on around $20 billion worth of Canadian goods, affecting products including beer, clothing, dairy, cement and hockey equipment. The measures represent about 5.5% of Canada's exports to the United States.
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On X account, PM Carney stated, "Late last evening I instructed our negotiators to return to Ottawa. We cannot accept what the U.S. has offered, and we will not give what they have asked.
Canada will match the U.S.' new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses. We take this step confident that it is in the best interests of Canada."
The countermeasures, expected to take effect on September 8, will target a range of US products, including steel, dairy, electronics, appliances, paper and agricultural equipment, as per the NDTV report.
Washington, meanwhile, maintains that it had offered substantial tariff reductions on key Canadian exports, including steel, aluminium, automobiles and lumber, in exchange for concessions from Ottawa. The US position has intensified the dispute, with both sides blaming the other for the failure to reach a new agreement.
"In the coming days, we will release the details of these new tariff measures, which will come into force the Tuesday after Labour Day," he further wrote.
Carney said the latest confrontation reflects a fundamental shift in Canada-US economic relations. He argued that “America has changed” and warned that Canada must adapt to a new economic reality by reducing its dependence on the US and expanding trade with other countries.
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The escalating tariff dispute threatens to further strain one of the world's most important bilateral trading relationships. It also raises wider questions about the future of the US-Canada-Mexico trade framework, as Ottawa reassesses its long-term economic strategy amid growing tensions with Washington.
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