Canada's Prime Minister Mark Carney announced that the nation will match U.S. tariffs dollar-for-dollar starting September 8, following the breakdown of trade talks late Friday. Carney characterized the fresh U.S. tariffs as a "miscalculation" intended to "hurt and divide us."
Carney stated that he walked away from the negotiation table because he was unwilling to "compromise Canada's sovereignty." He added that the U.S. "asked too much and they offered too little."
Details of Canada's counter-measures, which will include levies on steel, dairy, appliances, and electronics, are expected in the coming days. Carney described the retaliation as "reluctant" and necessary to protect Canadian interests.
Earlier in the week, both countries had expressed optimism about reaching a deal. However, talks collapsed Friday night with each side accusing the other of making last-minute changes. U.S. negotiators claimed Canada introduced "new demands and walk backs" on previously agreed terms. Conversely, Carney cited "last-minute changes" by the U.S. that were "unfair" and "uneconomic."
Following the collapse of negotiations, Canada will face new 50% U.S. tariffs on a range of goods, in addition to existing tariffs on steel, aluminum, automobiles, and lumber.