OTTWA, Aug 23: Canadian Prime Minister Mark Carney has vowed to respond to steep new US tariffs with matching duties on American goods, saying Ottawa had exhausted efforts to reach a trade agreement with Washington. Carney said the first phase of Canada’s “focused response” would begin on September 8, targeting US products including steel, dairy, appliances, agricultural equipment, paper and electronics, Al Jazeera reported.
The announcement came hours after the United States imposed 50 percent tariffs on nearly $20 billion worth of Canadian goods. The move followed weeks of uncertainty and repeated negotiations between the two neighbours, who have maintained close economic ties and have long ranked among each other’s biggest trading partners.
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Carney said Canada had approached the negotiations with patience but ultimately withdrew because Washington “asked too much and offered too little”. He accused US negotiators of introducing last minute demands that undermined the talks, including changes involving automobile imports and restrictions on Canada’s ability to establish trade agreements with other countries, Al Jazeera said.
The Canadian prime minister also criticised what he described as Washington’s shifting justifications for the tariffs. US President Donald Trump has cited issues including drug trafficking, Canadian television advertising and wildfire smoke while defending tougher trade measures against Canada.
The latest escalation follows a broader effort by Trump, since returning to office in 2025, to use tariffs as leverage in negotiations with trading partners. Carney has increasingly argued that countries classified as middle powers should work together to reduce their dependence on major powers such as the US and China.
Carney said his government had recognised early that Washington was prepared to reshape its trade relationships, including with longtime allies. He warned that the US could change its position abruptly, saying the gap between partnership and competition had become too wide, according to Al Jazeera
The Trump administration, however, has blamed Canada for the failure to reach an agreement. As recently as Friday, Trump suggested that negotiations were progressing. Reports said Washington had offered to reduce tariffs on Canadian aluminium, cars and steel in exchange for greater US access to Canada’s dairy and lumber markets.
By Saturday, however, US Trade Representative Jamieson Greer said no further talks were planned and warned that Washington would take additional measures in response to Canada’s retaliatory tariffs. The comments signalled that the dispute could intensify rather than return quickly to negotiations.
According to the Doha-based news channel, Carney said Canada would respond by expanding trade ties with other countries and reducing its dependence on the US market. “We can’t control the storm that blows in from Washington,” he said, arguing that Canada could instead chart a new course by strengthening its economy and diversifying its international trade.
Asked whether his sombre speech amounted to a declaration of a trade war, Carney gave a blunt answer: “You’re at war when you get attacked. We got attacked.”
