Will match tariffs dollar for dollar: Canada's Carney as trade talks with US fail

The United States and Canada failed to reach a trade agreement after three days of negotiations in Washington, with the US set to impose 50% tariffs on some Canadian imports.A senior Trump administration official said the Section 338 tariffs, covering around $20 billion worth of Canadian goods, would take effect shortly after midnight on Saturday.Canadian Prime Minister Mark Carney said Ottawa had suspended trade negotiations and would respond with dollar-for-dollar retaliatory tariffs.The breakdown followed talks between Canada's minister for trade with the US, Dominic LeBlanc, and US Trade Representative Jamieson Greer. MAKING PROGRESS BUT DIDN'T REACH AGREEMENT: CARNEYCarney said the countries had been “making important progress” towards a deal but could not reach an agreement that met Canada's objectives. He directed Canadian negotiators to return to Ottawa.He said the US planned to impose 50% tariffs at midnight on roughly $28 billion worth of Canadian goods. Canada, he added, would match the tariffs “dollar for dollar” to protect its workers and businesses.According to The New York Times, a US official said Canada was seeking concessions that Washington was unwilling to provide, particularly on automobiles, steel, aluminium and lumber.The official warned that if Canada retaliates against the tariffs, President Donald Trump would be given options to “level out the playing field once again.”Shortly before US Trade Representative Jamieson Greer addressed reporters, US Customs and Border Protection issued guidance to importers stating that tariffs on specified Canadian products would take effect after 12:01 am.DO NEW MEASURES AFFECT CANADA EXPORTS?The new measures affect a relatively small share of Canadian exports but come on top of existing US tariffs on steel, lumber and automobiles. They could put further pressure on Canada's economic recovery and complicate broader negotiations between the two countries over a free-trade agreement.The tariffs will also apply to Canadian goods that qualify for preferential treatment under the US-Mexico-Canada Agreement, which has protected much of Canada's industry from earlier US tariffs. - EndsPublished By: Devika BhattacharyaPublished On: Aug 22, 2026 09:47 IST