Canada will match US tariffs 'dollar for dollar,' Carney says

Canada will match US tariffs “dollar for dollar,” Prime Minister Mark Carney announced, following the collapse of trade negotiations between Ottawa and Washington. The decision comes amid escalating tensions over trade policies, with Canada vowing to retaliate against the United States’ newly imposed 50% tariffs affecting approximately $20 billion in Canadian exports. The tariffs, which took effect on Saturday, were initially scheduled to begin on Wednesday but were delayed as discussions between the two nations reached a stalemate. Carney described the last-minute alterations to the proposed agreement by the U.S. as “unfair, uneconomic” and questioned the reliability of any future deal. In a public statement, he emphasized that Canada would respond proportionally to safeguard its domestic industries and workforce. “We made important progress toward improving Canada’s position as having the best deal in the world with the U.S., however, that progress has not been enough to meet our objectives for Canadians,” he said. The breakdown in talks followed a statement from US Trade Representative Jamieson Greer, who noted that Canada had refused to finalize the trade deal under previously agreed terms. According to Greer, the Trump administration had offered “significant tariff reductions on steel, aluminium, autos and lumber” in exchange for Canadian concessions. This move was framed as an effort to ease the economic burden on both sides, though it did not resolve the underlying disputes. Despite these developments, US President Donald Trump claimed during a public address that the U.S. should be capable of reaching a deal with Canada, highlighting his “good relationship” with Carney. His remarks underscored the personal ties between the leaders, yet they failed to bridge the gap in their positions on key trade issues. Washington has cited “discriminatory treatment” of American alcohol, automotive, and dairy products as justification for the tariffs. Ottawa, meanwhile, has consistently pressed for relief from Trump’s levies on steel and aluminium, as well as automobiles, which have caused substantial economic strain. These tariffs have contributed to job losses and have complicated the already complex trade relationship between the two nations. Former US Commerce official Ryan Majerus warned that Canada’s potential imposition of retaliatory tariffs could complicate efforts to deescalate the situation. “If Canada has agreed to also impose retaliatory tariffs, that will make deescalating this a lot harder,” he stated to AFP. His comments reflect concerns among experts that further escalation could lead to a prolonged trade conflict, harming global supply chains and consumer markets. The immediate impact of the tariffs is expected to be felt across multiple sectors, particularly in manufacturing and agriculture. Canadian exporters face increased costs, while American producers benefit from reduced competition. Analysts suggest that the retaliatory measures could trigger a cycle of tit-for-tat tariffs, potentially leading to a broader economic downturn. As both nations prepare to implement their respective policies, the international community watches closely for signs of compromise or further deterioration in bilateral relations.