Mark Carney, Canada's Prime Minister, has described a new wave of US tariffs on Canada as a "miscalculation" intended to "hurt and divide us," following the collapse of trade talks late on Friday.
Carney stated that he walked away from a deal because he was unwilling to "compromise Canada's sovereignty," and felt the country was being "attacked" by the US.
"They asked too much and they offered too little," Carney told Canadians on Saturday morning.
The prime minister confirmed that Canada would match US tariffs "dollar-for-dollar" starting 8 September, including levies on steel, dairy, appliances, and electronics.
US President Donald Trump has not yet commented.
Both countries had expressed optimism for a deal earlier in the week, but talks disintegrated after each side accused the other of making last-minute changes.
With the breakdown of talks, Canada is now facing new 50% US tariffs on a variety of Canadian goods, in addition to existing US tariffs on Canadian steel, aluminum, automobiles, and lumber.
The prime minister said Canada's retaliation was "reluctant" and aimed at protecting its interests. Details of the counter-measures will be disclosed in the coming days, he added.
Leaders of other federal parties in Canada, including the Conservative opposition, have expressed support for the prime minister, as have the leaders of some Canadian provinces.
Tariffs – a tax on imports – have been a central element of Trump's trade policy, with the US president arguing they would stimulate American manufacturing and create domestic jobs.
However, critics contend that tariffs have increased prices for American consumers and have disrupted and harmed the global economy.
Carney's speech on Saturday was his first address to Canadians after announcing late Friday night that a deal would not be reached, accusing the Americans of making "last-minute changes" that were "unfair" and "uneconomic."
US negotiators, meanwhile, accused Canada of making "new demands and walk backs" on previously agreed terms.
On Saturday, US trade representative Jamieson Greer told Fox News that there were no plans to resume talks.
He also mentioned that the US had been prepared to reduce some of its tariffs on Canada as part of the failed deal.
Carney, however, asserted that the US presented "unacceptable" terms that were overly restrictive, including limitations on Canada's ability to enter into new trade agreements with other countries.
He also refuted the claim that Canada had made last-minute requests, stating: "We clarified what was on offer and were continually disappointed by the answers."
Doug Ford, the premier of Ontario, Canada's most populous province, backed Carney and declared that Trump "can't be trusted."
Conservative opposition leader Pierre Poilievre also appeared to support Carney, calling the latest US levies "unjustified."
Christine Fréchette, Quebec's premier, warned that jobs would likely be lost due to the new US tariffs.
"Behind these numbers are real people," she said, pledging to implement measures to support affected sectors.
Alberta premier Danielle Smith, whose oil-rich province has sought to build ties with the Trump administration, urged both sides to resume negotiations.
The collapse follows more than a year of intermittent trade talks, which intensified in recent weeks after a US-imposed deadline to reach a deal or face further tariffs.
The two countries were also undergoing a mandatory review of an existing North American free trade agreement, known as USMCA, which includes Mexico.
The pact was signed by Trump during his first term to replace the 1994 North American Free Trade Agreement. It governs $1.6 trillion (£1.2 trillion) in annual trilateral trade among Canada, the US, and Mexico.
Earlier this summer, Canada and Mexico formally requested the renewal of USMCA for another 16 years. However, the US declined to renew it in its current form.
When asked about the impact of Friday's trade talk collapse on the North American free trade pact, Carney stated it was "certainly not good news."
