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 said in a speech to Canadians on Saturday morning.
The prime minister announced that Canada will match US tariffs "dollar-for-dollar" starting September 8, including levies on steel, dairy, appliances, and electronics. Donald Trump has not yet commented.
Both countries had expressed optimism for a deal earlier in the week, but talks broke down on Friday night with each side accusing the other of making last-minute changes.
Now that talks have failed, Canada faces new 50% US tariffs on a range of its goods, in addition to existing US tariffs on Canadian steel, aluminum, automobiles, and lumber.
Carney said Canada was retaliating "reluctantly" to safeguard its interests. Details of the counter-measures will be disclosed in the coming days.
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 added that the US had been prepared to reduce some of its tariffs on Canada as part of the deal that fell apart.
"They've always had the best deal, and they still would have an even better deal, but they didn't want that," said Greer.
Carney, however, asserted that the US presented "unacceptable" terms that were too restrictive, including limiting Canada's ability to enter into new trade agreements with other countries.
The prime minister also refuted the claim that Canada had made last-minute requests: "We clarified what was on offer and were continually disappointed by the answers."
The collapse follows more than a year of intermittent trade negotiations, which intensified in recent weeks after a US-imposed deadline to reach a deal or face further tariffs.
The two countries were also involved in a mandatory review of an existing North American free trade agreement, known as USMCA, with Mexico.
The pact was signed by Trump during his first term to replace the 1994 North American Free Trade Agreement. It supports $1.6 trillion (£1.2 trillion) in annual trilateral trade across Canada, the US, and Mexico.
Earlier this summer, Canada and Mexico had formally requested that USMCA be renewed for another 16 years. The US, however, 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."
Tariffs – a tax imposed on imports from other countries – have been a central element of Trump's trade policy, with the US president arguing they would stimulate American manufacturing and create jobs domestically.
Critics, however, contend that tariffs have increased prices for American consumers and have disrupted and harmed the global economy.
