TORONTO: Canadian Prime Minister Mark Carney has described the latest round of US tariffs on Canadian goods as a “miscalculation” intended to “hurt and divide” Canada after trade negotiations between the two countries broke down late Friday.
Addressing Canadians, Carney said the US had demanded too much while offering too little, leaving the two countries in a trade “war” following Washington’s imposition of additional duties on Canadian products.
Carney announced that Canada would respond by matching the US tariffs “dollar-for-dollar” from September 8. The retaliatory measures are expected to cover products including steel, dairy goods, appliances and electronics.
The breakdown in negotiations has disrupted a long-standing and deeply integrated trade relationship between the two neighboring allies, with no immediate solution in sight. US President Donald Trump has not yet publicly commented on the development.
The two sides had appeared optimistic about reaching an agreement earlier in the week, but negotiations collapsed after Canada and the US accused each other of introducing changes at the final stage of the discussions.
Following the breakdown, Washington imposed new 50% tariffs on a range of Canadian products, in addition to existing US duties on Canadian steel, aluminum, automobiles and lumber. The latest tariffs affect around $20 billion (£15 billion; C$28 billion) worth of Canadian imports, representing about 5% of total imports from Canada. Affected products include wine, dairy products, cement, clothing and hockey equipment.
Carney said Canada was taking retaliatory action reluctantly to protect its economic interests. He said details of the counter-tariffs would be announced in the coming days.
Leaders of Canada’s federal political parties, including the opposition Conservatives, have expressed support for the government’s response, as have several provincial leaders.
Tariffs, which are taxes imposed on imported goods, have been a central element of Trump’s trade strategy. The US president has argued that tariffs can strengthen domestic manufacturing and generate employment in the United States. Critics, however, contend that they increase costs for American consumers while disrupting international trade and harming the global economy.
(Inputs from BBC)
Comment