Canada will impose retaliatory tariffs on a range of US goods after trade negotiations with Washington collapsed, Prime Minister Mark Carney said Saturday, further straining relations between the two longtime allies.
The tariffs, which will take effect on September 8, will match the new US duties "dollar for dollar" and cover products including steel, electronics, dairy, appliances, agricultural equipment, pulp and paper.
"Canada will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses," Carney told a press conference.
Asked whether Canada was engaged in a trade war with the United States, Carney said, "You're at war when you get attacked. We got attacked."
The announcement followed the collapse of three days of intensive trade negotiations between the two countries. Both sides blamed the other for the breakdown, raising uncertainty over the future of the US-Mexico-Canada free-trade pact.
US President Donald Trump's new 50% tariffs affect sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment. The duties cover about $20 billion worth of Canadian exports to the US and do not exempt Canadian products covered by the three-nation trade agreement.
Carney said the US administration's last-minute demands had stalled negotiations.
"In recent days, the U.S. proposed new terms that were uneconomic, unfair, and undermined the net benefits to Canada, calling into question the reliability of any deal," he said.
The Canadian prime minister said the US proposals also included restrictions on Canada's ability to negotiate new trade agreements.
"We cannot accept what they have offered, and we will not give what they have asked," Carney said.
Carney also said the US position would have excluded Canadian-made models, including Ford's F-350, F-450 and F-550 trucks and General Motors' Silverado, making production in Canada less competitive.
He said some other US proposals affected Canadian culture, language and sovereignty, but did not elaborate.
US Trade Representative Jamieson Greer described the collapse of the talks as "a missed opportunity for Canada to partner with the United States".
"We're moving forward with measures that respond to Canadian retaliation," Greer told Fox News. "They've always had the best deal, and they still would have an even better deal, but they didn't want that."
The White House, the US commerce secretary's office and the US trade representative's office did not immediately respond to requests for comment.
Trump had expressed hope that an agreement with Canada could be reached Friday, but Carney said the final US demands prevented further progress.
Carney said Canada would announce support measures next week for industries affected by the new US tariffs, adding that the assistance could remain in place for years.
The new US duties cover around 5% of Canada's exports to the United States. Trade experts have warned that vulnerable sectors such as softwood lumber and wine could face severe damage, including job losses and business closures.
"We will be mobilizing our network of businesses in all regions and all sectors to brace for impact and make the best of a bad situation," Canadian Chamber of Commerce CEO Candace Laing said.
Canada sends nearly 70% of its exports to the United States, making the country heavily dependent on the US market.
Carney was elected last year after promising to take a tough negotiating position with Trump and remains broadly popular, while polls show most Canadians oppose making concessions to the United States.
Conservative Party leader Pierre Poilievre backed a united response to the new tariffs.
"Canadians must stand united to defend our country against these unfair attacks on our jobs and businesses," he said in a statement.
