US President Donald Trump has escalated his dispute with Canada after Prime Minister Mark Carney announced retaliatory tariffs following the collapse of trade negotiations between the two countries.
Trump criticised Canada in a post on Truth Social, saying it wanted the benefits of being a US state without becoming one. He also accused Canada of imposing heavy tariffs on American farmers for years.
The comments came after Carney confirmed that new Canadian tariffs would take effect on September 8, targeting products including US steel and dairy goods.
New US tariffs of 50% on around $20 billion worth of Canadian products came into force on Saturday. The affected goods include hockey equipment, cement and other products, representing about 5.5% of Canada’s exports to the United States.
Carney described the situation as a trade war and said Canada had been left with little choice after Washington presented what he called unacceptable terms.
“You’re at war when you get attacked. We got attacked,” Carney said.
He said the United States had introduced new conditions at the last stage of negotiations that were “uneconomic” and “unfair”.
“We cannot accept what they’ve offered, and we will not give what they’ve asked,” he added.
The negotiations had appeared to be progressing earlier in the week, prompting Trump to delay the planned introduction of the new US tariffs. However, the talks broke down after both sides accused the other of changing previously discussed terms.
US Trade Representative Jamieson Greer said Washington was moving ahead with measures in response to Canadian retaliation and that there were no plans for another round of negotiations.
Canada has been seeking exemptions from US tariffs on automobiles, steel and aluminium, which Ottawa says have harmed the country’s economy and contributed to job losses.
Carney said the talks also broke down over US demands concerning Canada’s ability to negotiate trade agreements with other countries. He also accused US negotiators of making unacceptable demands involving French-language protections and Quebec’s culture.
The dispute has drawn criticism from US politicians, including Democratic governors in border states. New York Governor Kathy Hochul accused Trump of raising costs for American households and businesses by creating unnecessary conflicts with allies.
The Business Roundtable, representing about 200 major US companies, also warned that the tariffs could increase costs and called for both countries to return to negotiations.
The latest dispute comes as Washington and Ottawa face a broader review of the USMCA trade agreement covering the United States, Canada and Mexico.
Carney has said Canada’s relationship with the US has permanently changed and that his country must reduce its dependence on its largest trading partner, which accounts for about 70% of Canadian exports.
Ontario Premier Doug Ford backed Carney’s position, saying Canadians needed to remain united as tensions with Washington continued to grow.
