Canadian Prime Minister Mark Carney has pledged to match US tariffs dollar-for-dollar after trade negotiations between the two nations broke down on Friday.

Canadian Prime Minister Mark Carney announced he walked away from trade negotiations with the United States on Friday night, citing unacceptable terms and last-minute demands. Following the collapse of talks, Canada faces new 50% US tariffs on various goods, adding to existing duties on steel, aluminum, automobiles, and lumber. Carney stated that Canada will retaliate with dollar-for-dollar counter-measures beginning September 8.

Competing Claims Over Negotiations

Prime Minister Carney accused the US of attempting a "power play" by introducing last-minute, unfair changes that threatened Canadian sovereignty and restricted the nation's ability to strike trade deals with other countries. He stated that the US "asked too much and offered too little." Conversely, US trade representative Jamieson Greer claimed that Canada introduced new demands and walked back on terms previously agreed upon earlier in the week. Greer stated that the US had been prepared to reduce some tariffs as part of the proposed deal and indicated there are currently no plans to resume negotiations.

Economic Impact and Retaliation

The escalating trade dispute is expected to impact both nations, as Canada sends approximately 70% of its exports to the US. States such as Michigan, Kentucky, Indiana, and Ohio are identified as particularly exposed to the trade friction. Canada's planned retaliatory tariffs will target US steel, dairy, appliances, and electronics. Carney defended the decision to reject the US terms, stating it was in the best interest of Canada to protect its sovereignty. He noted that the government is acting "reluctantly" but is prepared for the economic consequences of the dispute.