Carney-Trump trade war: Canada set to impose retaliatory tariffs on US products | Today’s news
Canada is set to impose tariffs of 15% to 50% on hundreds of US products starting Tuesday (Sept. 8), escalating its trade dispute with the Trump administration as Prime Minister Mark Carney seeks to strengthen Ottawa’s negotiating position with Washington.
Barring a last-minute delay, the Carney administration will raise tariffs on several US steel products to 50% from 25%. The new measures will also affect a range of consumer goods, including motorcycles, cosmetics and cheese.
Carney is betting on pressure to bring the US back to talks
The move represents a calculated risk for Carney, who previously removed many of the counter-tariffs imposed by former Prime Minister Justin Trudeau.
Brian Clow, a former senior Canadian adviser on trade and U.S. relations under Trudeau, said the measures are aimed at increasing pressure on American businesses and consumers.
“Canadian retaliatory tariffs are designed to make the costs of this trade war so real to American businesses and consumers that Washington sees a clear incentive to come back to the table,” Clow said, according to Bloomberg.
“Canada is not imposing these tariffs because it wants a trade war. It is imposing tariffs because it wants the trade war to end,” he added.
US-Canada trade talks have collapsed
US and Canadian negotiators spent weeks trying to reach a deal that would ease trade tensions and appeared to have reached terms.
US President Donald Trump said on August 18 that the two sides had reached a tentative agreement and gave negotiators three days to finalize the details. The deal subsequently fell through.
The collapse sparked two weeks of criticism and recriminations from both governments, with each side blaming the other for the failure.
Trump issues new warning over Canadian dollar
Trump also issued a veiled warning about the Canadian currency on Sunday.
“The imbalance between the Canadian (currency) dollar and the US is unacceptable,”
Trump wrote in a Truth Social post.
“It was like that for years – but not anymore!”
The White House did not clarify what Trump meant by the “currency imbalance.”
US tariffs are already hitting Canadian goods
On August 22, the Trump administration imposed 50% tariffs on about $20 billion worth of Canadian goods.
Three days later, Canadian officials announced a counter-tariff targeting roughly the same dollar value as American products.
The latest Canadian measures raise the prospect of another round of retaliation from Washington.
U.S. Trade Representative Jamieson Greer indicated the Trump administration could impose additional tariffs or even ban certain Canadian imports, though no timetable was given.
Car tariffs remain a big threat
Trump also threatened to raise tariffs on cars to 50% from 25% starting January 1, 2027.
However, he has not yet formally introduced the measures, so it remains uncertain whether they will be part of Washington’s next response to Canada.
Carney said Canada is seeking a “permanent” deal with the U.S. and remains ready to resume negotiations.
“We are ready to sit down and do a deal when the Americans are ready,” Carney said, while insisting that any deal must allow Canada’s auto, steel and aluminum industries to remain competitive.
The Lake America line ups the tension
The trade dispute spilled over into political and diplomatic rhetoric.
Trump signed an order renaming Lake Ontario “Lake America” on US maps and posted several social media messages criticizing Canada.
Canadian officials have accused the US administration of making demands that could undermine Canadian sovereignty and harm key industries.
US lawmakers are calling for renewed negotiations
Speaker of the House of Representatives Mike Johnson also called on Washington and Ottawa to return to negotiations.
“We need Canada to come to the table and be in good faith and go through with it because it’s very important to both countries,” Johnson said after Greer briefed House Republicans.
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