Carney says Canada to match US' 50% tariffs "dollar-for-dollar" after trade talks collapse

Ottawa [Canada], August 23 (ANI): Canadian Prime Minister Mark Carney on Saturday said Canada will match the United States' new tariffs dollar-for-dollar to protect Canadian workers, farmers, families and businesses, after trade negotiations between the two countries collapsed.
In a post shared on X, Carney said, "For over a year, Canada has worked intensively and in good faith with the United States to negotiate a new comprehensive trade deal. We have been pragmatic, patient, and persistent. Our goal has always been to get the best deal for Canadians, never a deal at any price or on any time frame."
Carney further said he had instructed Canadian negotiators to return to Ottawa after over a year of discussions with Washington, adding that Canada could not accept the offer made by the United States.
"Late last evening I instructed our negotiators to return to Ottawa. We cannot accept what the U.S. has offered, and we will not give what they have asked," he said.
"Canada will match the U.S.' new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses. We take this step confident that it is in the best interests of Canada," Carney added.
The Canadian Prime Minister added that Ottawa would announce details of its retaliatory tariff measures in the coming days. The new measures will come into force on the Tuesday after Labour Day.
"In the coming days, we will release the details of these new tariff measures, which will come into force the Tuesday after Labour Day," the post concluded.

For over a year, Canada has worked intensively and in good faith with the United States to negotiate a new comprehensive trade deal. We have been pragmatic, patient, and persistent. Our goal has always been to get the best deal for Canadians, never a deal at any price or on any…

— Mark Carney (@MarkJCarney) August 22, 2026

The development came after trade negotiations between Washington and Ottawa broke down late Friday night, with the United States imposing a 50 per cent tariff on nearly USD 28 billion worth of Canadian imports from 12:01 am ET.
Carney described Washington's last-minute demands as "unfair and uneconomic", saying they raised questions over the reliability of any potential agreement.
He said Canada had made significant progress in recent weeks during the negotiations, but the outcome did not meet Ottawa's objectives.
"Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal," he said.
Carney said the Canadian government would introduce additional measures to support workers and businesses, building on nearly USD 25 billion in assistance provided over the past 18 months.
The Prime Minister also outlined Canada's broader economic strategy, saying the country was working to strengthen its domestic economy and diversify trade partnerships.
"We have recognised from the beginning that America has changed, and that we will not return to our old relationship," Carney said.
He said Canada was advancing nearly USD 500 billion in major infrastructure projects while seeking new export markets for Canadian businesses.
"Our existing free trade deals already provide Canada with preferential access to 1.5 billion consumers, and we are on track to double that market access by the end of this year," he said.
Carney claimed Canada's economic growth was accelerating and the country was projected to record the second-fastest growth among G7 nations over the next two years.
"Our economy is creating jobs at four times the rate of the United States. Our exports to non-U.S. markets are on track to double over the next decade," he said.
Meanwhile, the United States Trade Representative criticised Canada's decision, calling it a "missed opportunity" and accusing Ottawa of withdrawing commitments and adding new demands during the negotiations.
The US said it had offered sector-specific relief for steel, aluminium, automobiles and lumber, along with cooperation on export controls, digital trade, critical minerals and supply chain coordination.
"Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walkbacks of other commitments by Canada have upended the careful balance reached in the past days," the US Trade Representative said.
Washington also accused Canada of continuing retaliatory measures against US goods and services, while stating that Canada had historically enjoyed favourable access to the US market.
The latest dispute comes amid a wider push by countries to diversify trade partnerships following tariff measures introduced by the Trump administration.
According to Canada's Office of the Chief Economist, Canadian exports to the US fell 3.7 per cent last year amid global shocks and trade tensions, while exports to non-US markets rose by 11.1 per cent. (ANI)