Canada to retaliate for US tariffs, worsening ties after talks fail
By Promit Mukherjee and Bhargav Acharya
Sun, August 23, 2026 at 7:23 AM GMT+5:30
4 min read
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OTTAWA, Aug 22 (Reuters) – Canada will impose tariffs on some U.S. goods in retaliation for 50% levies ordered by President Donald Trump on Canadian products, Prime Minister Mark Carney said on Saturday, after trade talks collapsed between the two neighbors
The “dollar for dollar” tariffs on imports of U.S. steel, electronics and other products, to take effect on September 8, mark a further worsening of relations between the longtime allies and major trading partners
The two countries failed to reach a trade deal late on Friday, with each side blaming the other for derailing three days of intensive negotiations. The breakdown complicates the future of a U.S.-Mexico-Canada free-trade pact
Trump’s new tariffs hit sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, covering some $20 billion of Canadian exports to the U.S. These duties do not exempt Canadian products under the three-nation trade deal, which has shielded most Canadian exports to the U.S. in the last 18 months
‘WE GOT ATTACKED,’ CARNEY SAYS
“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney told a press conference
“You’re at war when you get attacked. We got attacked,” Carney said when asked a question about whether Canada was engaged in a trade war
Carney is one of the few global leaders to retaliate against U.S. tariffs and has pledged to forge new trade and military alliances, despite Canada’s dependence on the United States for nearly 70% of its exports
U.S. Trade Representative Jamieson Greer called the breakdown “a missed opportunity for Canada to partner with the United States,” saying no new talks were planned with Canada
“We’re moving forward with measures that respond to Canadian retaliation,” Greer told Fox News. “They’ve always had the best deal, and they still would have an even better deal, but they didn’t want that.”
The White House, the U.S. commerce secretary’s office and the U.S. trade representative’s office did not immediately respond to requests for comment
Canada will impose tariffs on U.S. steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, along with some products the U.S. previously targeted in Canada, Carney said from Ottawa’s Parliament building. The government will release details on its response in the coming days, he said
“We cannot accept what they have offered, and we will not give what they have asked,” Carney said
