Canada to Hit US Goods With Tariffs From Sept 8 After Talks Collapse

Canadian Prime Minister Mark Carney on Saturday said Canada will impose retaliatory tariffs on US goods starting September 8, after trade talks aimed at averting new US punitive tariffs collapsed on Friday. Details of the measures will be released in the coming days, Carney said, Reuters reported.

"In the coming days, we'll release details of these new tariff measures, measures which will come into force the Tuesday after Labor Day," Carney told a news conference.

The decision came hours before the US was set to impose an additional 50% tariff on Canadian goods. Carney said Canada would respond with tariffs on US goods "dollar for dollar" to protect Canadian workers and businesses.

Roughly $20 billion of Canadian exports face the new tariffs. Products include wine, furniture, dairy, cement, clothing, fishing equipment and hockey equipment, CNBC reported. The targeted list covers household names in Canadian manufacturing and agriculture.

For investors, the collapse shifts the trade-risk calculus. Sectors with large cross-border supply chains – autos, steel, aluminum, lumber – face renewed uncertainty. The USMCA, the trade pact covering the US, Canada and Mexico, now has another complication. Canada had entered negotiations seeking tariff-free access for most businesses, but Carney called last-minute US changes "unfair" and "uneconomic."

US Trade Representative Jamieson Greer offered a different account. In a post on X early Saturday, Greer said Canada had declined to finalise a deal under terms agreed earlier in the week. Greer said Washington offered significant tariff reductions on steel, aluminum, automobiles and lumber, but accused Ottawa of continuing retaliatory measures against US goods and services.

Canada suspended trade negotiations on Friday. Carney directed his negotiators to return to Ottawa, saying the government would not accept a trade agreement "at any price or on any deadline."

The talks had appeared close to a breakthrough earlier in the week. President Donald Trump postponed the original Wednesday tariff deadline, saying a deal was close. Canada's trade minister Dominic LeBlanc also said on Thursday that the two sides were "very close," CNBC reported.

Carney's decision has drawn support from several provincial leaders. Ontario Premier Doug Ford backed the move, while British Columbia Premier David Eby said Canada would continue fighting. Alberta Premier Danielle Smith, however, urged Carney to return to the negotiating table, while Canadian industry expressed concern over prolonged uncertainty, the New York Times reported.

Carney has been working to reduce Canada's economic dependence on the US. The country is advancing nearly $500 billion in major infrastructure projects, and exports to non-US markets are expected to double over the next decade, he said. Canada's existing free trade agreements provide preferential access to 1.5 billion consumers, and the government expects to double that by year-end.

"We will not allow any nation to determine our future," Carney said.

The broader risk for markets is the damage to cross-border supply chains and investment confidence. The US and Canada have been each other's largest trading partners. A prolonged tariff war would hit both economies, but Canada is more exposed because of its close integration. The Canadian dollar could weaken further, and companies with significant US revenue could face margin pressure.

Carney also said the government would introduce additional support for businesses and workers, building on nearly $25 billion in aid over the past 18 months. The collapse of the talks comes as Canada seeks to reduce its economic dependence on the US. Carney has been pursuing partnerships in Asia and Europe, the New York Times reported.

The tariffs are set to take effect September 8, the Tuesday after Labor Day. The exact list of US goods targeted will be released in the coming days.