U.S.-Canada negotiations fail, Carney: We are in a trade war, Trump miscalculated

Following the failure of trade talks on Friday, U.S. President Donald Trump declared that Canada wants “the benefits of being an American state.”

Trump also said that American farmers have faced “massive amounts of tariffs” imposed by Canada for years.

Canadian Prime Minister Mark Carney described the new U.S. tariffs as a “miscalculation” that, he said, was designed “to hurt and divide us.” He announced that Canada would impose reciprocal tariffs “dollar for dollar,” beginning September 8.

“We are in a trade war,” Carney said on Saturday. “You are at war when you are attacked. We were attacked.”

The U.S. measure provides for 50% tariffs on a wide range of Canadian products, while existing tariffs on steel, aluminum, automobiles and lumber remain in place.

The cited data show that the new tariffs will affect Canadian imports worth around $20 billion, or approximately 5% of the total. The list includes wine, dairy products, cement, clothing and hockey equipment.

Carney said Canada’s response was being undertaken “reluctantly,” with the aim of protecting the country’s interests. Details of the countermeasures are expected to be announced in the coming days.

At the beginning of the week, both governments had expressed hope for an agreement, but the process was halted after the United States and Canada accused each other of making changes and presenting demands at the last minute.