Trump slaps Canada as Carney vows to answer dollar for dollar
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Trade talks in Washington broke down late on Friday, and the United States moved quickly to impose 50% tariffs on Canadian goods covering about $20 billion in trade. The levies hit building materials, toilet-paper tissue, cement, hockey sticks and alcohol, while sparing oil, gas, electricity and potash. Mark Carney suspended negotiations after both sides accused the other of rewriting terms at the end of the process.
“They asked too much and they offered too little.”
The immediate trade hit is narrow compared with the $382 billion in Canadian goods that the United States imported last year, but the politics are broad. Canada said it will impose dollar-for-dollar retaliatory tariffs from 8 September on US steel, dairy products, electronics, appliances, agricultural machinery and assembled cars. Carney also used his Saturday address to argue that Canada must cut its reliance on the American market, a line made easier by polls showing strong domestic support for taking a harder stance toward Washington.
- Canadian goods hit by new tariffs20
- Total US goods imports from Canada last year382
The dispute now sits inside the scheduled review of the United States-Mexico-Canada Agreement, which Washington declined in July to extend for a fresh 16-year term. That keeps the pact alive until 2036, but it turns annual reviews into recurring pressure points. Mexico is keeping its own track open with Washington, which leaves Ottawa exposed to a familiar North American problem: trilateral rules, bilateral leverage. The tariff fight matters because it turns the continent's most stable supply chain into a political bargaining table with forklifts waiting at the door.
Reporting from: Reuters, New Statesman, Bloomberg Business, Al Jazeera Online, Franceinfo, Financial Times News