Canadian Prime Minister Mark Carney announced the imposition of retaliatory tariffs on the United States in a 'dollar for dollar' format. Carney stated in Ottawa on Saturday that the new Canadian duties will take effect on September 8 and will be applied to American products in sectors such as steel, dairy products, electronics, and others.
According to Carney, Canada intends to firmly counter the new tariffs imposed by the US to protect the interests of its workers, farmers, families, and businesses. These retaliatory measures were adopted after the US introduced 50 percent tariffs.
Following three days of intensive negotiations between Canada and the US, which did not result in a trade agreement, America imposed 50% tariffs. In response, Canada announced the introduction of its own duties, marking the beginning of a trade war between the two countries.
The new tariffs, introduced by US President Donald Trump, affected numerous sectors, including alcohol, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment. The total value of these goods is approximately $20 billion, covering 5.5 percent of Canada's exports to the US.
The Canadian Prime Minister noted that the conditions proposed by Trump were economically unfounded and reduced the overall benefit for Canada, casting doubt on the reliability of any possible agreement. He also emphasized that these conditions limited Canada's ability to conclude new trade agreements.
In his twenty-two-minute address, Carney stated that Canada is prepared to waive existing retaliatory tariffs on American aluminum, steel, and automobiles if the US significantly reduces its duties. Furthermore, Canada is ready to resume the sale of American alcohol.
Carney stated that when you are attacked, you enter a state of war, and since Canada was attacked, the country is now in a state of trade war. He added that the final terms proposed by the Trump administration were unacceptable because they contained too many demands and too few offers, and Canada is unwilling to compromise that would jeopardize the country's sovereignty or weaken its key industries.
The Prime Minister also noted that the trade conflict has led to a fundamental change in relations between Canada and its southern neighbor. He acknowledged that the US has changed from the beginning, and that relations will not return to the previous state.
It should be noted that Canada is heavily dependent on America, importing 70 percent of its goods from the US. Despite the risk of rising inflation in Canada due to the new tariffs, the Canadian Prime Minister maintained a firm stance toward America.