Canada vows 'dollar for dollar' response as US puts 50% tariffs on some goods

The US has imposed 50% tariffs on some goods from Canada, and the country’s prime minister, Mark Carney, has vowed to match them “dollar for dollar” after the collapse of trade talks.

The tariffs came into force on about $20bn (£14.6bn) of goods – ranging from hockey sticks to tongue depressors – at 04.00 GMT. Trade experts said the tariffs could result in some job losses, but the largest impact is expected to be political, driving a further wedge between the traditional allies.

The two sides appeared close to a deal on Friday to lower tariffs on steel, aluminium and cars, but the deal was scuttled at the last minute. The two sides blamed each other for the collapse.

Canadian officials had worked hard in good faith but “last-minute changes in the US proposed terms were unfair, uneconomic and called into question the reliability of any deal”, Carney said in a statement.

US officials accused Canada of collapsing the deal by seeking additional concessions at the last minute.

Carney recalled his negotiators as Canada vowed to match Washington’s tough approach. No further talks are planned.

The prime minister said of the 50% tariffs the US was imposing: “Canada will match those tariffs dollar for dollar to protect our workers and businesses.”

The US tariffs will affect about $20bn worth of Canadian products, and the US trade representative, Jamieson Greer, said the breakdown represented a “missed opportunity for Canada”.

“Tonight, Canada declined to finalise the trade deal under the terms agreed earlier this week,” he said in the statement shortly before midnight on Friday. “Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days.”

Trump’s import taxes will apply to about 5% of what Canada ships to the US every year.

Carney said his government would announce additional support for Canadian workers and businesses in the coming days, and that 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 move was supported by Ontario’s premier, Doug Ford, who said on X: “Team Canada needs to stand together more united than ever before. The prime minister has my full support for a strong response – tariff for tariff, dollar for dollar. As we fight to protect Canadian sovereignty and economic security, everything needs to be on the table. Ontario is ready to do its part.”