OTTAWA: Canadian Prime Minister Mark Carney announced retaliatory tariffs on the United States on Saturday (Aug 22), after walking away from a “bad deal” on trade in a deepening rift between the longtime allies.
Negotiations between the neighbouring countries broke down Friday in Washington, putting into force new 50 per cent US tariffs impacting about US$20 billion worth of goods, or 5.5 per cent of Canadian exports to the United States.
Impacted products range from hockey sticks to cement.
“You’re at war when you get attacked. We got attacked,” Carney said.
US President Donald Trump hit back at Canada on Sunday, saying, “Canada wants the benefits of being a State, without being one!!!”
“They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!” Trump added in a post on Truth Social.
New Canadian tariffs will notably target the US steel and dairy industries and take effect on Sep 8. More details would come next week, Carney said.
Trump had previously said Washington “should be able to have a deal with Canada”, citing his “good relationship” with Carney.
But on Saturday, Canada’s prime minister said Trump set conditions that were ultimately unacceptable even though earlier talks had been positive.
“In recent days, the United States proposed new terms that were uneconomic, unfair and undermined the net benefits for Canada, and called into question the reliability of any deal,” Carney said in Ottawa.
“We cannot accept what they’ve offered, and we will not give what they’ve asked.”
US Trade Representative Jamieson Greer told the New York Times on Saturday that the US had offered to reduce its tariffs on steel, aluminium and autos, as well as eliminate a recently imposed tariff on Canadian lumber.
Greer said those measures would have given Canada “the most preferential treatment of any trading partner”, according to the Times.
Greer told Fox News on Saturday that Washington was “moving forward with measures that respond to Canadian retaliation”. He said no new talks were planned with Canadian negotiators.
A senior US official characterised this week’s talks in Washington as candid and not acrimonious.
“SIGNIFICANT PRESSURE”
Canada has been seeking relief from Trump’s tariffs on autos, steel and aluminium, which have battered the country’s economy, forced job losses and strained what was once an iron-clad trade relationship.
The White House had alleged “discriminatory treatment” by Canada against US alcohol, automobile and dairy products in introducing the duties.
They were originally set to take effect on Wednesday, before Trump issued a three-day reprieve citing progress in talks.
Carney said one reason the deal collapsed was US negotiators at the 11th hour introducing restrictions on Canadian trade deals with other countries.
US negotiators also made unacceptable “threats” to the French language and “Quebec culture”, he said, referring to the French-speaking province in eastern Canada.
