Canada has vowed to match 50 per cent U.S. tariffs on Canadian products “dollar for dollar” as Donald Trump’s import taxes come into force. The tariffs, on $20 billion worth of Canadian products, came into force early Saturday after last-minute negotiations failed. Trump’s tariffs will hit about 5 per cent of what Canada ships to the U.S. every year.
The goods affected range from hockey sticks to tongue depressors. Canadian Prime Minister Mark Carney immediately promised to retaliate, saying: “Canada will match those tariffs dollar for dollar to protect our workers and businesses.” Canada sought concessions on steel, aluminium, lumber and cars, but the U.S. was unwilling to provide those, a senior official in the Trump administration said. Trade Representative Jamieson Greer said shortly before midnight.
He added that his government would announce additional support for Canadian workers and businesses in the coming days. Greer said that the U.S. offer was “forward-looking” and included “a historic economic and national security partnership.” No further talks have been planned. The breakdown in negotiations marked a sharp reversal from two days earlier, when officials from the two countries sounded as if they were headed toward a compromise.
Carney said Canada’s goal throughout the negotiations had been to secure the best possible agreement, “never a deal at any price or on any deadline.” The political impact will likely be even bigger than the economic fallout. The countries sold each other $880 billion worth of goods and services in 2025. The tariffs were initially supposed to kick in at 12.01 a.m.
Trump extended the deadline for three days to allow talks to continue, but the two countries still could not reach an agreement in time. Trump’s approach to dealing with Canada marks an extraordinary departure from the traditionally cooperative relationship between the two countries. Trump has also made repeated inflammatory comments about turning Canada into America’s 51st state.
Carney said Canada had recognized that “America has changed” and that the two countries would “not return to our old relationship.” A petition to expel the U.S. ambassador, a Trump ally, from Canada has collected nearly 248,000 signatures since July 21. It accuses Ambassador Pete Hoekstra of having “normalized’’ Trump’s talk of annexing Canada, among other things. Nearly 72 per cent of Canada’s goods exports went to the United States in 2025.
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