After Donald Trump's announcement, Canada is preparing counter tariffs.
U.S. President Donald Trump stated that Canada seeks to take advantage of the opportunities provided by state status without becoming a state, which occurred after the failure of bilateral trade negotiations. On the Truth Social platform, he wrote that Canada has been charging high tariffs on American farmers for years, and added that this has come to an end.
According to BBC News, Canadian Prime Minister Mark Carney described the new tariffs from the U.S. as a “miscalculation” aimed at harming and dividing them. He announced that countermeasures would be implemented starting September 8, based on the principle of “a dollar for a dollar.” Carney characterized the situation as a trade war, emphasizing that they have been attacked.
The new 50% tariffs imposed by the U.S. apply to Canadian imports worth about $20 billion, which accounts for about 5% of the total volume. The list of restrictions includes dairy products, wine, clothing, cement, and hockey equipment, which complement existing restrictions on steel, automobiles, aluminum, and lumber.
The Prime Minister noted that Canada is forced to take countermeasures but is determined to protect its interests. According to him, Washington's demands have been excessive, including limiting the ability to enter into trade agreements with other countries.
For its part, the American side accused Canada of presenting new demands and abandoning previously reached agreements. U.S. Trade Representative Jamison Greer stated that Washington currently has no plans to resume discussions.
The breakdown of negotiations occurred after more than a year of trade consultations, jeopardizing the close economic ties between the two countries. The annual trade volume between the U.S., Canada, and Mexico is about $1.6 trillion, regulated by the USMCA agreement.
