Canada to Impose Retaliatory Tariffs on US from September 8, Escalating Trade Tensions

Canadian Prime Minister Mark Carney announced on Saturday (August 22) that the country will impose retaliatory tariffs against the United States, following Washington's decision to apply a 50% tariff on $20 billion worth of Canadian goods. The new Canadian tariffs will target US steel, dairy, electronics, and various other industries, taking effect on September 8.

Speaking in Ottawa, Carney emphasized: "Canada will respond to Washington's new tariffs on a dollar-for-dollar basis to protect Canadian workers, farmers, families, and businesses." The announcement came after days of tense negotiations collapsed late Friday, worsening the long-standing relationship between the two trading partners and allies.

The new US tariffs imposed by President Donald Trump cover sectors including wine, furniture, dairy products, cement, clothing, fishing gear, and hockey equipment, affecting approximately $20 billion in goods—equivalent to 5.5% of Canada's total exports to the US.

Carney stated that the US presented conditions Canada could not accept, despite earlier negotiations being constructive. He said: "In recent days, the US proposed new terms that are non-economic, unfair, erode Canada's net benefits, and question the reliability of any agreement." These demands included restrictions on Canada's ability to sign new trade agreements. He also mentioned that US negotiators made unacceptable "threats" against the French language and "Quebec culture."

Prime Minister Carney is among few global leaders openly retaliating against US tariffs, while committing to forge new trade and military alliances despite Canada's nearly 70% export dependence on the US. Canada will impose tariffs on steel, dairy, household appliances, agricultural tools, pulp and paper, electronics, and several US products previously targeted against Canada. The government will release details of its response in coming days and is expected to announce support measures for affected industries next week, potentially lasting several years.

The White House had no immediate comment. US Trade Representative Jamieson Greer confirmed no new negotiations were scheduled with Canada, stating the US will "move forward with measures responding to Canada's retaliation."

The new US tariffs are projected to significantly impact Canada's economy. Prices and costs are expected to rise, unemployment rates could escalate, and many small and medium businesses face bankruptcy risk. In this context, Carney is promoting the view that the trade war presents an opportunity for Canada to diversify economic ties with Asia, Europe, and other regions, reducing reliance on the US.

Public opinion polls in Canada show a majority supporting a tough stance against the US. A Leger survey last week found 56% of Canadians want to maintain a hardline approach and make no further concessions.

Ontario Premier Doug Ford, one of the most vocal critics of US tariffs, backed Carney's decision to retaliate, calling the US-proposed deal "terrible" for the province's auto, steel, and manufacturing sectors. Meanwhile, public sentiment in both countries reflects concerns about rising prices, but some argue Canada must firmly "stand up to the bully in Washington."

Democratic lawmakers and governors in border states like Minnesota, New York, and Washington condemned the trade war, saying Trump's policies are causing chaos and driving up US living costs. New York Governor Kathy Hochul wrote on X: "Choosing to pick fights with allies and raise prices at home—that's Trump's economic policy." The Business Roundtable, representing 200 top US CEOs, warned the new tariffs "risk increasing costs for American businesses and families," urging both governments to resume negotiations.