Canadian Prime Minister Mark Carney announced Saturday that his country will implement retaliatory tariffs on the United States, which will go into effect on September 8. The announcement follows the U.S. imposition of 50% tariffs on approximately $28 billion worth of Canadian imports, including beer, cheese, and electronics, which began at 12:01 a.m. Saturday.
Carney stated that the U.S. "asked too much and offered too little" during recent trade talks, adding, "We cannot accept what they’ve offered and we will not give what they’ve asked." The new U.S. tariffs are expected to increase costs for American consumers on goods such as lumber, building materials, and auto parts.
The U.S. Trade Representative's office, through Jamieson Greer, stated that Canada had been given ample opportunity to reach a trade agreement. Greer asserted that Canada enjoyed historically favorable access to the U.S. market and accused Canada of making "new demands and walk backs" that prevented a "forward looking" deal, particularly concerning aerospace and critical minerals.
Canada's retaliatory measures are scheduled to take effect the Tuesday after Labor Day. This escalating trade dispute could have significant economic repercussions, particularly in Michigan, a key U.S. state where Canada is the largest export market. The state is also a focal point for a closely watched U.S. Senate race.
In response to previous U.S. tariffs on Canadian exports, Canadian provinces had removed U.S. liquor products from their shelves in March 2025. The Distilled Spirits Council has urged policymakers on both sides of the border to find a negotiated solution to restore market access for U.S. spirits in Canada and return to a zero-tariff framework.
Other Canadian goods impacted by the new U.S. tariffs include cement, electronic equipment, plastic flooring, wood, paper, wine, and hockey sticks. The U.S. tariffs are being implemented under Section 338 of the Tariff Act of 1930, which allows for duties up to 50% on imports from countries deemed to be imposing unequal or discriminatory trade practices against the United States. Prime Minister Carney also indicated that his government would provide additional support measures for Canadian businesses, supplementing $25 billion already allocated.