Canada will announce retaliatory tariffs on United States goods effective September 8, covering roughly $20 billion of exports after negotiations with the Trump administration broke down. The move follows the US threat of 50 % duties on Canadian automobiles, auto parts and steel. The announcement escalates the bilateral trade dispute.
Prime Minister Mark Carney and Finance Minister François‑Philippe Champagne are set to unveil Canada’s response on Tuesday, after Carney said Washington’s stance that Canada is a subsidiary of the United States is unacceptable. He added that US demands would destroy Canadian autos, steel and aluminum industries, calling the deal a bad one.
Canada relies on the United States for about 70 % of its total exports, while the US counts Canada as its second‑largest goods trading partner after Mexico. With no further talks scheduled, the tit‑for‑tat tariffs threaten to disrupt integrated auto and steel supply chains that cross the border.