Canada is set to announce its response to U.S. President Donald Trump’s new tariffs on Tuesday.
Ottawa’s reaction comes after new duties took effect on Saturday, following talks with the United States that failed to avert new 50 percent U.S. tariffs on certain Canadian goods. Canadian Prime Minister Mark Carney said Ottawa’s retaliatory measures will take effect on September 8 and will target U.S. steel, dairy, agricultural equipment, paper, and electronics.
“We learned that, during the negotiations, the Americans wanted to destroy our major industries—including the automotive, steel, and aluminum sectors—through unfair negotiating terms. And that is one of the main reasons why we said no,” Carney said.
He added that the objective of trade talks with the United States “has always been to get the best deal for Canadians, never a deal at any price or on any time frame.” Building domestically and diversifying trade abroad has been “plan A from the start,” Carney said. The Canadian prime minister added that U.S. negotiators also sought restrictions on his country’s trade deals with other countries and made unacceptable “threats” to the French language and “Quebec culture.” U.S. Vice President JD Vance argued that the talks broke down because Canada had “unreasonable last-minute demands.”
The escalating tariff dispute risks accelerating a broader restructuring of one of the world’s most deeply integrated trading relationships. With roughly 70 percent of Canadian exports destined for the United States, Ottawa remains highly exposed to further U.S. trade restrictions, particularly in the strategically important automotive, steel, and aluminum industries. At the same time, Washington has significant exposure to disruptions in cross-border supply chains, giving Canada some retaliatory leverage despite the imbalance in economic dependence. Carney’s emphasis on expanding domestic production and diversifying trade suggests Ottawa increasingly views reducing its reliance on the U.S. market as a long-term strategic objective rather than simply a response to the current dispute.
