Canada vows to match US tariffs 'dollar for dollar' as PM Mark Carney hits out at Trump's 'miscalculation'
The countries had been closing in on a deal but Mark Carney accused Washington of proposing "unfair and uneconomic" alterations
Canada's Prime Minister Mark Carney has vowed to impose tariffs on US imports early next month after Donald Trump imposed levies "designed to hurt and divide" his country.
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The US imposed 50% tariffs on some Canadian goods that came into effect on Midnight after an anticipated trade deal between the countries collapsed in the final stages of talks.
Speaking on Saturday, the Canadian PM said Trump's tariffs were designed to "hurt and divide us" as he announced that Canada's retaliatory tariffs on US imports would come into effect on September 8.
"They are a miscalculation, because Canadians will always take care of each other," he said.
He added that he walked away from a deal with Trump as he was not prepared to "compromise Canada's sovereignty".
"We cannot accept what they have offered, and we will not give what they have asked," Carney said on Saturday.
He added that Canada will match US tariffs "dollar-for-dollar", including levies on steel, dairy, appliances and electronics.
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On Friday night, longstanding allies were closing in on reaching an agreement, but in the early hours of Saturday it emerged they had failed to reach a deal.
US tariffs came into effect just after midnight US time on some $20 billion of Canadian goods, marking an increase in tensions between Donald Trump and Prime Minister Mark Carney.
Carney accused Washington of proposing "unfair and uneconomic" last-minute alterations to the deal, prompting Canada to withdraw.
For over a year, Canada has worked intensively and in good faith with the United States to negotiate a new comprehensive trade deal. We have been pragmatic, patient, and persistent. Our goal has always been to get the best deal for Canadians, never a deal at any price or on any…
— Mark Carney (@MarkJCarney) August 22, 2026
The products hit by the taxes vary from alcohol to hockey skates, and is expected to make further talks to renew the free-trade agreement more difficult.
In an earlier statement, Carney: "I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to return to Ottawa.
"They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute.
"However, last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal."
"Canada declined to finalise the trade deal under the terms agreed earlier this week," US Trade Representative Jamieson Greer said during a White House briefing.
"This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7."
A senior Trump administration official said that Canada had sought additional concessions, especially on steel, aluminium, autos and softwood lumber.
No additional talks are scheduled as the US implements the new duties, the official said.
Canada's refusal to back down is likely to be well received by its public after Carney's election last year based on his pledge to stand up to Trump.