Canada will match U.S. tariffs dollar for dollar after Washington imposed 50% duties on $20 billion of Canadian products, effective September 8, following a collapse of trade talks. This move follows the U.S. decision to impose the tariffs on September 1 and the subsequent announcement by Prime Minister Mark Carney that Canada would retaliate.
Prime Minister Mark Carney announced the decision on Saturday after trade talks with U.S. officials collapsed, citing last‑minute U.S. changes that were 'unacceptable' and restricting Canada's ability to negotiate other trade deals, which he said would undermine the USMCA.
The tariffs target key Canadian exports such as automobiles, dairy, and lumber, and the dollar‑for‑dollar response will likely increase costs for Canadian manufacturers and could strain the U.S.‑Canada supply chain, affecting trade flows under the USMCA.
U.S. trade representatives denied any intention to resume talks, while Canadian officials accused Washington of imposing restrictive terms that would curb Canada's ability to pursue other trade agreements, a claim that could further polarize negotiations.