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Tariffs Trigger Retaliation
Canada announced retaliatory tariffs against the United States after failed trade talks, with Prime Minister Mark Carney’s government in Ottawa saying it would match the US measures “dollar for dollar, rate for rate counter-tariffs.”
“dollar-for-dollar, rate for rate counter-tariffs”
DW reported Canada’s Finance Ministry said the government negotiated “intensively and in good faith” toward a “fair and comprehensive trade agreement,” but that the US proposed new terms that were “not in Canada’s best interest.”
The dispute followed Trump’s threatened 50% tariffs, with DW saying Canada listed some 700 US products subject to either 15%, 25% or 50% tariffs as of September 8.
The Hill reported that Commerce Secretary Howard Lutnick’s interventions helped derail the talks after officials felt good about an outline of a trade deal struck last Tuesday, but the negotiations fell apart on Friday hours before tariffs were set to go into effect on items including wine, hockey sticks, cement and others.
BBC said the US-Canada trade war escalated after Trump threatened to hike auto tariffs, with Canada officials announcing a news conference on Tuesday to outline how the country would respond and work to “protect and support Canadian workers and businesses during these challenging times.”
Carney, Greer Trade Blows
In the dispute’s political and diplomatic fallout, BBC said Prime Minister Mark Carney called Trump’s latest levy threat unsurprising and accused the president of wanting to destroy Canada’s auto industry, adding that Canada is ready to resume talks only if the US comes with the “right attitude.”
The Hill reported that when asked whether Lutnick’s involvement in the final days of negotiations was an impediment, Carney said that’s “a question for the U.S. administration,” while also saying his Canadian team was “unified … but you cannot say that about the United States administration.”
CNBC quoted U.S. Trade Representative Jamieson Greer saying, “Then in the last hours, I think there were things that the Canadians just — you know, they wanted more,” framing Canada’s late changes as the reason the talks collapsed.
BBC also said the breakdown led to growing tensions as both sides publicly dug in their heels, with US Trade Representative Jamieson Greer telling CNBC that Canada wanted more and Canada saying the US introduced last-minute demands that were “unacceptable.”
KSL News reported Trump’s social media threat that “Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!” after the weekend collapse, while Reuters-linked auto executives raised skepticism about whether the 50% tariffs would materialize.
What’s at Risk Next
As the tariff fight moves from threats to implementation, DW said Canada’s counter tariffs would apply to products covering $27.6 billion in imports from the US and focus on sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.
“to keep their heads above water”
BBC reported that Canada walked away from trade negotiations late on Friday night moments before a US-imposed deadline that would add a 50% levy on nearly $20bn (C$28bn; £14bn) of Canadian imports, and that Canada said it would counter with reciprocal tariffs “dollar for dollar.”
CBC said the continuation of earlier US tariffs after the failure of US-Canada trade talks puts companies at risk, quoting Nicole Vlanich of the Canadian Association of Mold Makers saying companies could ride out the US tariffs for another three to six months and warning that firms would need support “to keep their heads above water.”
In Windsor, CBC also quoted Unifor Local 200 president John D’Agnolo saying, “My engines — 90 per cent of them go to the other side of the border,” and arguing that machines that take years to make can’t be moved quickly, adding that the result would be “even more job loss.”
The Guardian said the tariffs affected around 5% of Canada’s exports to the US and that Carney toured a shipyard with Quebec’s premier, telling attendees Canada “could not accept” a proposed trade deal that would have weakened French language protections, while Trump posted that Canada was “ripping off the United States of America for years.”