Canadian Prime Minister Mark Carney has announced that Canada will impose retaliatory tariffs on the United States after negotiations aimed at averting new trade barriers collapsed.
Speaking on Saturday, Carney described the latest US tariffs as a “miscalculation” intended to “hurt and divide us”. He said Canada had left the negotiations because it would not compromise its sovereignty, adding that the country was being “attacked” by the United States.
“They asked too much and they offered too little,” Carney said. He said Canada would respond reluctantly but would match the US measures dollar-for-dollar from 8 September. The planned Canadian tariffs will cover steel, dairy products, appliances and electronics, while further details are expected in the coming days.
Dispute over terms of a proposed deal
Both countries had expressed optimism earlier in the week that an agreement could be reached. However, the talks ended on Friday night, with each side accusing the other of changing its position at the last minute.
Carney said the US had put forward terms that Canada could not accept, including restrictions on Canada’s ability to negotiate future trade agreements with other countries. He rejected the US assertion that Canada had introduced new demands, saying Canadian negotiators had clarified their offer but were repeatedly dissatisfied with the responses.
US Trade Representative Jamieson Greer said on Saturday that there were no plans to restart negotiations. Speaking to Fox News, he said Washington had been prepared to reduce some tariffs as part of the proposed agreement, but said Canada had declined what he characterised as a favourable deal.
New tariffs and pressure on North American trade pact
Following the breakdown, Canada was hit with new 50% US tariffs on a range of Canadian goods. Those measures come in addition to existing US tariffs affecting Canadian steel, aluminium, automobiles and lumber. President Donald Trump had not commented on the collapse of the talks at the time of Carney’s remarks.
The dispute follows more than a year of intermittent negotiations, which became more urgent in recent weeks after a US deadline for reaching a deal or facing additional tariffs.
The two countries are also involved in the required review of the USMCA North American trade agreement with Mexico. The agreement supports $1.6tn in annual trade among the three countries. Canada and Mexico requested a 16-year renewal earlier in the summer, but the US declined to renew the pact in its current form. Carney said the failure of the latest talks was “certainly not good news” for the agreement.
Source: BBC News
