Canadian Ministers of Finance, Industry, and Labour are scheduled to present the Government of Ottawa's reaction to recent American tariffs at 1:00 PM (6:00 PM in Lisbon). Currently, a large portion of Canadian steel entering the United States is already subject to a 50% tax, but Washington had indicated the possibility of reducing this rate in case of a trade agreement, which did not happen.
Donald Trump has intensified trade actions since taking office for his second term in early 2025, accusing Canada of 'abusing Washington's generosity' both commercially and militarily.
On Monday, Washington formalized the application of new customs duties, three days after the Canadian Prime Minister, Mark Carney, broke off negotiations. Trump detailed on social media that starting January 1, 2027, 'all automobiles, trucks—large and small—, automotive parts, and steel will have tariffs raised to 50%.'
Trump also accused Canada, stating: 'Canada has been robbing the United States of America for years.' In response, the Canadian government criticized the United States for 'asking too much and offering too little' and alleged that Washington was attacking the 'status of the French language,' a politically sensitive issue in Canada, which has English and French as official languages.
Mark Carney reaffirmed on Monday that Canada would not accept a trade pact with the United States 'at any cost' or 'on any timeline.' He added that over more than a year, Canada worked diligently and in good faith with the United States to negotiate a new comprehensive trade agreement. The Canadian Prime Minister also emphasized that the country has strengthened other trade alliances, signing agreements in Asia and with the European Union, among others.
'We discovered that during the negotiations, the Americans wanted to destroy our main industries—including the automotive, steel, and aluminum sectors—with unfair proposals. This is one of the main reasons why we said no,' explained Carney.
Doug Ford, mayor of the Canadian province of Ontario, directed direct criticism at Donald Trump. The US President reacted on the Truth Social platform, reiterating his proposal to make Canada the 51st US state.
Washington began applying surcharges at midnight and one minute on Saturday, covering a total of $20 billion in imported Canadian products, such as cement and hockey sticks. These American surcharges, initially scheduled for August 19, were postponed when an agreement seemed imminent, before Carney chose to end the trade talks and promise a 'dollar-for-dollar' response.
The United States is Canada's most important trading partner, as Canadian exports to this country currently account for about 70% of the total. A survey conducted in Canada last weekend showed that 76% of respondents support the breakdown of negotiations, and 62% expressed support for the retaliations mentioned by Mark Carney.
According to Agence France Presse, the increase in customs tariffs risks boosting inflation in the United States, which has generated growing dissatisfaction among the American population regarding the US leader as the interim elections scheduled for early November approach.