OTTAWA-(MaraviPost)-Canada will impose a new round of retaliatory tariffs on U.S. goods from September 8 after last-ditch trade negotiations between Ottawa and Washington collapsed without an agreement.
Reuters reported on Saturday that Prime Minister Mark Carney announced the measures after the United States imposed new 50% tariffs on about $20 billion worth of Canadian products.
Carney said Canada would respond on a dollar-for-dollar basis, targeting a range of U.S. sectors including steel, dairy, agricultural equipment and electronics.
The announcement marks a sharp escalation in the trade dispute between the two neighbouring countries, whose economies are deeply interconnected.
The latest U.S. tariffs took effect after negotiations failed to resolve disagreements over the terms of a potential trade agreement.
Carney said Ottawa had made significant efforts to reach a deal but could not accept what he described as unfair and economically damaging demands from Washington. Canadian negotiators were recalled after the two sides failed to bridge their differences during intensive discussions.
The Canadian government has said the retaliatory measures will be designed to match the economic impact of the new U.S. tariffs. Ottawa is expected to release a detailed list of affected American products in the coming days.
The collapse came only days after both governments had indicated that progress was being made. U.S. President Donald Trump had temporarily delayed the new tariffs to allow negotiators additional time to reach an understanding, raising hopes that a broader agreement could be achieved.
Those expectations were ultimately dashed when the two sides failed to agree on the final terms. U.S. Trade Representative Jamieson Greer offered a different account of the breakdown, arguing that Canada introduced new demands and withdrew from commitments that had formed part of the emerging agreement.
Carney, however, maintained that Canada’s position was aimed at protecting its economic interests and preserving the country’s ability to pursue independent trade policies. He said Ottawa would not accept an agreement simply for the sake of ending the dispute.
The new tariffs are expected to place additional pressure on businesses on both sides of the border. Canadian industries exposed to the U.S. market could face higher costs and weaker demand, while American companies that rely on Canadian suppliers or consumers could also experience disruptions.
The dispute also threatens to further strain one of the world’s most important trading relationships. Canada and the United States conduct hundreds of billions of dollars in trade annually, with supply chains crossing the border in sectors ranging from manufacturing and agriculture to energy and technology.
Canadian officials have indicated that Ottawa will continue efforts to diversify its international trade relationships and reduce its dependence on the U.S. market. The government is also preparing measures to support workers and businesses affected by the escalating tariff dispute.
For now, September 8 has become the next key deadline. Unless Ottawa and Washington return to negotiations and reach a compromise, the new Canadian measures will add another layer of tariffs to an increasingly complicated North American trade conflict.
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