In an ongoing trade dispute with the United States, Canada said on Saturday that it would introduce tariffs on several US products starting September 8.

The announcement comes in retaliation to the US imposing 50% tariffs earlier on Saturday on a broad range of Canadian products after the two sides failed to reach a trade deal on Friday.

"Canada will match Washington's new ⁠tariffs ​dollar for dollar in order to protect ​Canadian workers, farmers, families, and businesses," Prime Minister Mark Carney told reporters in Ottawa.

"In the coming days, we will release the details of these new tariff measures, which will come into force the Tuesday after Labor Day," he said.

While the US had blamed Canada for declining to finalize the trade pact with Washington on Friday, Carney defended Ottawa's position, explaining, "We cannot accept what they have offered, and we will not give what they have asked."

He later on Saturday met virtually with provincial and territorial premiers to discuss the suspension of the trade talks with the US. 

What products are affected by the tariffs?

The US tariffs will affect a broad range of products, including wine, furniture, dairy products, cement, clothing, fishing ‌rods, and hockey ​equipment, and cover some $20 billion (€17 billion) worth of Canadian exports to its southern neighbor.

Canada's retaliatory tariffs would, in turn, target steel, dairy, appliances, agricultural equipment, pulp and paper and electronics, Carney said.

The US currently accounts for roughly 70% of Canadian exports, making Ottawa potentially more vulnerable in the standoff Carney explicitly described as a trade "war."

"You're at war when you get attacked. We got attacked," he said, adding that Canada had the reserves, resilience and plan to respond.

How have Canadian and US politicians reacted?

Doug Ford, the premier of Canada's most populous province Ontario and one of the most vocal opponents of Trump's tariffs, slammed the proposed trade deal and backed Carney's decision to retaliate.

"I'm glad he didn't sign that deal because it was a bad deal. It was a bad deal for Ontario. It was a bad deal for the auto sector, the steel sector and ​manufacturing sector," Ford said on Saturday.

In the US, Democratic lawmakers and governors have blamed Trump for the escalating trade conflict.

"Needlessly picking fights with our allies and raising prices here at home. That's Trump's economic policy in a nutshell," New York Governor Kathy Hochul posted on X.

Friendly ties turned sour

The fresh tariffs are the culmination of long and tense trade negotiations between the two sides and mark a sharp reversal from just two days earlier, when officials from Washington and Ottawa appeared optimistic that a compromise was in the making.

According to the AP news agency, no further talks were planned to resolve the situation.

The US administration's approach to Canada is a major change from the friendly ties the two countries have traditionally had.

US President Donald Trump has often said he wants tariffs on Canadian goods to encourage companies to move manufacturing back to the US.

He has also made controversial comments about making Canada the 51st US state. Carney said Canada understood that "America has changed" and that the two countries would "not return to their old relationship."

Edited by: Sean Sinico

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