Prime Minister Mark Carney has labeled the latest wave of US tariffs on Canada a 'miscalculation' aimed at 'hurting and dividing us,' following the spectacular collapse of trade talks late Friday. Because nothing says 'allies' like a tariff war, apparently.
'They asked too much and they offered too little,' Carney told Canadians on Saturday morning, confirming the country is now in a trade 'war' after being hit with punishing new US duties. He vowed to match US tariffs 'dollar-for-dollar' starting 8 September, covering steel, dairy, appliances, and electronics. Because if there's one thing that makes dairy tariffs more palatable, it's symmetry.
The collapse upends a deeply integrated trading relationship between two allies, with no clear path to resolution. US President Donald Trump has yet to comment, perhaps because he's busy drafting a tweet about how he won something.
Earlier in the week, both countries were optimistic about a deal, but talks fell apart after each side accused the other of last-minute changes. The US has now slapped new 50% tariffs on a range of Canadian goods, on top of existing duties on steel, aluminium, automobiles, and lumber. The new tariffs cover about $20bn (£15bn; C$28bn) of Canadian imports - roughly 5% of the total - including wine, dairy, cement, clothing, and hockey equipment. Yes, hockey equipment. Because when you want to hurt a nation, you go for the hockey sticks.
Carney said Canada is retaliating 'reluctantly' to protect its interests, with details of counter-measures expected in the coming days. Leaders of other federal parties, including the Conservative opposition, voiced support, as did several provincial premiers. Because nothing unites a country like a common enemy, even if that enemy is your biggest trading partner.
Tariffs, as a reminder, are taxes on imports. Trump argues they boost American manufacturing and create jobs, while critics point out they raise prices for consumers and disrupt the global economy. But who needs nuance when you can have tariffs?
Carney's Saturday speech was his first address after announcing late Friday that no deal would be reached, accusing Americans of making 'last-minute changes' that were 'unfair' and 'uneconomic.' US negotiators, meanwhile, accused Canada of making 'new demands and walk backs' on previously agreed terms. It's like a divorce where both parties insist the other is the unreasonable one.
US trade representative Jamieson Greer told Fox News there are no plans to resume talks, adding that the US had been prepared to cut some tariffs as part of the ill-fated deal. Carney, however, said the US presented 'unacceptable' terms, including curbing Canada's ability to strike trade deals with other countries. He also rejected the assertion that Canada made last-minute requests: 'We clarified what was on offer and were continually disappointed by the answers.'
Doug Ford, leader of Ontario, backed Carney and said Trump 'can't be trusted.' British Columbia Premier David Eby said the US demand for restrictions on Canada's trade deals 'would reduce us to the economic equivalent of the 51st state.' 'It was never acceptable to Canadians,' Eby said. Conservative opposition leader Pierre Poilievre called the latest US levies 'unjustified.' Quebec's premier, Christine Fréchette, warned of job losses, noting 'Behind these numbers are real people.' Alberta Premier Danielle Smith, whose oil-rich province has tried to cozy up to the Trump administration, urged both sides to resume talks.
The collapse comes after over a year of on-again, off-again trade talks, intensified by a US-imposed deadline. The two countries were also in a mandatory review of the USMCA trade pact with Mexico, signed by Trump in his first term to replace NAFTA. The pact underpins $1.6tn (£1.2tn) in annual trilateral trade. Earlier this summer, Canada and Mexico formally requested a 16-year renewal, but the US declined. Asked how the collapse impacts the pact, Carney said it's 'certainly not good news.'
Meanwhile, many Canadians are boycotting the US, choosing to travel elsewhere. Because when trade war breaks out, the best revenge is a vacation in, say, Europe.