Mark Carney, Canada's Prime Minister, has stated that a new round of US tariffs on Canada is a "miscalculation" intended to "hurt and divide us," following the breakdown of trade talks late on Friday.
Carney explained that he withdrew 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 remarked in a speech to Canadians on Saturday morning.
The prime minister announced that Canada would reciprocate US tariffs "dollar-for-dollar" starting September 8, imposing levies on steel, dairy, appliances, and electronics. Donald Trump has not yet responded.
Both nations had expressed optimism about reaching a deal earlier in the week, but negotiations collapsed on Friday night, with each side blaming the other for last-minute changes.
Following the breakdown, Canada is now subject to new 50% US tariffs on various Canadian goods, in addition to existing US tariffs on Canadian steel, aluminum, automobiles, and lumber.
Carney stated that Canada's retaliation was "reluctant" and aimed at protecting its interests. The specifics of the counter-measures are expected to be released in the coming days.
Carney's address on Saturday was his first public statement to Canadians since announcing late Friday night that a deal would not be finalized, citing "unfair" and "uneconomic" "last-minute changes" by the Americans.
US negotiators, conversely, accused Canada of making "new demands and walk backs" on previously agreed terms.
Speaking to Fox News on Saturday, US trade representative Jamieson Greer indicated 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 collapsed deal.
"They've always had the best deal, and they still would have an even better deal, but they didn't want that," Greer commented.
However, Carney asserted that the US presented "unacceptable" and overly restrictive terms, including limitations on Canada's ability to enter into new trade agreements with other nations.
The prime minister also refuted claims of last-minute Canadian requests, stating, "We clarified what was on offer and were continually disappointed by the answers."
This collapse follows over a year of intermittent trade negotiations, which intensified recently due to a US-imposed deadline to secure a deal or face further tariffs.
The two countries were also undergoing a mandatory review of the existing North American free trade agreement, known as USMCA, which includes Mexico.
This pact was signed by Trump during his first term, replacing the 1994 North American Free Trade Agreement, and it governs $1.6 trillion (£1.2 trillion) in annual trilateral trade among Canada, the US, and Mexico.
Earlier this summer, Canada and Mexico had formally requested a 16-year renewal of USMCA. 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 described it as "certainly not good news."
Tariffs, which are taxes on imported goods, have been a central element of Trump's trade strategy, with the US president arguing they would stimulate American manufacturing and create domestic jobs. Critics, however, contend that tariffs have increased prices for American consumers and have disrupted and harmed the global economy.
