Canada is preparing to unveil its counterstrike after President Donald Trump’s latest round of tariffs pushed two long-time neighbours deeper into a widening trade war.
Ottawa, describing the moment as “these challenging times,” said late last night that the ministers of finance, industry, labour and other officials will hold a press conference in Ottawa to spell out Canada’s response to the new levies.
The announcement follows a failed bid to head off steep new US duties. Canada and the United States were unable on Friday to reach an agreement to avert new 50% US tariffs on select Canadian goods after weeks of negotiations. The measures came into force on Saturday, and Canada set out plans to retaliate.
Mr Trump escalated matters again yesterday, saying he would double tariffs on Canadian autos starting next year to 50%.
At present, Canadian autos face a US tariff of 25% on non-US content, while imported steel entering the United States is generally subject to a 50% duty.
Canadian Prime Minister Mark Carney, after rejecting what he called a “bad deal,” announced retaliatory tariffs that will take effect from 8 September.
He said the retaliatory measures will target US steel and dairy industries, and will also reach into sectors such as agricultural equipment, paper and electronics.
Mark Carney speaks about the trade dispute with the US at the Davie Shipyard in Levis, Quebec
In its statement, the government said ministers will “announce new measures to protect and support Canadian workers and businesses during these challenging times.”
Mr Carney said yesterday that the purpose of the trade talks with Washington “has always been to get the best deal for Canadians, never a deal at any price or on any time frame.”
“We learned that, during the negotiations, the Americans wanted to destroy our major industries – including the automotive, steel, and aluminum sectors – through unfair negotiating terms. And that is one of the main reasons why we said no.”
He argued that strengthening domestic production and expanding trade ties beyond the US has been “plan A from the start.”
Over the weekend, Mr Carney said that at the 11th hour US negotiators also sought to limit Canada’s ability to pursue trade deals with other countries.
He added that US negotiators made unacceptable “threats” to the French language and “Quebec culture,” referring to the French-speaking province in eastern Canada.
Coils of steel are seen ready for transport at an ArcelorMittal Dofasco facility in Hamilton, Ontario
At a separate event, however, US Vice President JD Vance blamed Canada’s “unreasonable last-minute demands.”
The dispute lands heavily on an economic relationship in which the US remains Canada’s dominant market: Canadian exports to the United States account for 70% of Canada’s overall total.
Canada, meanwhile, is the United States’ second biggest trading partner in goods this year, behind Mexico, according to government data.
Polling released on Sunday by the Angus Reid Institute found that three in four Canadians support the Carney government’s decision to walk away from the trade talks.
The same research also showed unease underneath the support, with two in five Canadians reporting some fear about their jobs.
Ontario Premier Doug Ford criticised Mr Trump’s tariff threat on autos and warned an electricity surcharge could be used. Earlier in the dispute, Ontario imposed a 25% surcharge on electricity exports to three US states.
Mr Trump responded by lashing out at Mr Ford online, warning of “far worse” consequences.
The White House has alleged “discriminatory treatment” by Canada against US alcohol, automobile and dairy products in rolling out the 50% tariffs.
Mr Trump delayed implementation by three days last week, but the extension did not yield a breakthrough as talks continued down to the wire.
The newest duties apply to about 5.5% of Canadian goods entering the US, worth roughly $20 billion, and affect items including hockey sticks and cement.
Mr Trump claimed “Canada has been ripping off the United States of America for years,” adding “we don’t need Canada, they need us.”
US Trade Representative Jamieson Greer told The New York Times on Saturday that the Trump administration offered to eliminate a 10% tariff on softwood lumber and reduce the 25% autos tariff.
The US was also prepared to cut steel tariffs from 50% to 25% for most Canadian steel, Mr Greer said.
Beyond the immediate tariff battle, the two countries also face negotiations over revisions to the US-Mexico-Canada free trade agreement (USMCA), which Mr Trump has declined to renew in its current form.
Mr Trump has also repeatedly antagonised Canadians by threatening to make Canada a US state and by calling Mr Carney and his predecessor Justin Trudeau “governor” — as if they were US politicians, not prime ministers of an other country.
