Canada Hits Back at Trump Tariffs as Trade Talks With US Collapse

Canada Hits Back at Trump Tariffs as Trade Talks With US Collapse

Canada has suspended trade negotiations with the United States after the latest round of talks failed, with Prime Minister Mark Carney warning that Ottawa will retaliate against new American tariffs on Canadian goods.

Carney said Canada would respond with dollar-for-dollar tariffs on US products, signalling a fresh escalation in trade tensions between the two North American neighbours.

The suspension came just before a deadline for reaching an agreement following weeks of negotiations aimed at easing the dispute.

According to Carney, the two sides had made considerable progress, but Canada could not accept the terms presented by Washington in the final stages of the negotiations.

He said last-minute changes to the US proposal were unfair and economically damaging, while also raising doubts about the reliability of any agreement reached under such conditions.

The breakdown in negotiations means new US tariffs will now take effect on a range of Canadian exports.

The 50 per cent tariffs will affect products including wine, dairy goods, cement, clothing and hockey equipment, which account for about five per cent of Canada’s exports to the US.

The new measures will come alongside existing American tariffs on Canadian steel, aluminium, automobiles and lumber.

Canada is heavily dependent on the US market, with roughly 70 per cent of its exports destined for its southern neighbour.

Carney said Ottawa would therefore match the American measures by imposing equivalent tariffs on US goods.

The development represents a significant shift from the optimism expressed earlier in the week, when officials from both countries indicated that an agreement was within reach.

US Trade Representative Jamieson Greer, however, accused Canada of abandoning commitments made during the negotiations.

Talks had reportedly focused on reducing US tariffs on Canadian steel and aluminium from 50 per cent to 25 per cent, while duties on Canadian vehicles could have been reduced from 25 per cent to 15 per cent.

In exchange, Washington wanted Canada to open its market further to American dairy products and remove restrictions affecting the sale of US alcohol in some Canadian provinces.

Canadian businesses have expressed concern over the potential impact of the renewed tariff dispute.

The Canadian Chamber of Commerce described the measures as a major blow to North American competitiveness, warning that smaller exporters could face difficulties sustaining orders, wages and employment.

Some economists estimate that prolonged tariffs could cost Canada about 90,000 jobs, while financial analysts have projected a possible reduction of between 0.3 and 0.6 per cent in the country’s gross domestic product.

Ontario Premier Doug Ford has also supported the federal government’s position, backing a reciprocal response of “tariff for tariff, dollar for dollar.”

The latest confrontation comes amid wider trade tensions between Canada and the US following President Donald Trump’s return to the White House and his administration’s broad tariff programme.

With the two countries sharing one of the world’s most integrated trading relationships, the collapse of the negotiations could have significant consequences for businesses and consumers on both sides of the border.