23.08.2026 12:01
Canadian Prime Minister Carney announced they will retaliate dollar-for-dollar to protect workers, farmers, and businesses against the new US tariffs. He stated that they have suspended negotiations, rejecting the US conditions as 'economically non-viable'.
Canadian Prime Minister Mark Carney stated that the United States has proposed terms that are "economically unviable and unfair" in ongoing trade negotiations, and said they will respond dollar-for-dollar to Washington's new tariffs in order to protect workers, farmers, families, and businesses.
"WE WILL NOT GIVE THEM WHAT THEY ASK OF US"
At a press conference regarding the response to U.S. tariffs, Carney said Canada has been working in good faith for over a year to negotiate a comprehensive trade agreement.
Emphasizing that their goal has always been to secure the best deal for Canadians, Carney recalled that the U.S. announced another tariff last month.
Carney noted that he subsequently gave the negotiating team new authority to reach a fair deal, saying, "Last evening, I instructed our negotiators to return to Ottawa. We cannot accept what they have presented to us, and we will not give them what they ask of us."
"THE U.S. VIOLATED ITS COMMITMENTS"
Carney stated that the U.S. violated its commitments under the U.S.-Mexico-Canada Agreement (USMCA) last year by imposing a series of tariffs, and that the justification for these steps has been constantly changed.
Emphasizing that the U.S. claims it has been "ripped off" by Canada due to its trade deficit with Canada, Carney said, "The U.S.'s narrow goods trade deficit exists solely because the U.S. purchases large amounts of energy from Canada."
"WE TOOK STEPS IN GOOD FAITH"
Providing information about trade with the U.S., Carney said Canadian exports to the U.S. lower costs for American families, while tariffs are ultimately a type of tax paid by U.S. consumers.
Carney stated, "While the U.S. imposes what seems like an endless stream of tariffs and threatens with more, Canada, in contrast, has taken various steps in good faith to reach a compromise and secure a comprehensive agreement that benefits both Canadians and Americans."
Drawing attention to their goals in negotiations conducted in recent days, Carney listed their aims as preserving tariff-free access to the U.S. market for most Canadian businesses, bringing greater stability to trade relations, ensuring Canadian businesses have the best access conditions in the world by reducing U.S. tariffs in key strategic sectors, protecting small and medium-sized enterprises, and preserving Canada's resilience, independence, and sovereignty.
Carney said, "We presented proposals to secure a fair and comprehensive agreement that best serves the interests of Canadians. We were ready to remove our remaining retaliatory tariffs, especially in strategic sectors such as steel, aluminum, and automotive, in exchange for the U.S. significantly reducing its tariffs to levels that make it economically viable for Canadian companies to export to the U.S. However, there were things we would not do. We were not prepared to compromise Canada's sovereignty or weaken our key sectors."
"CREDIBILITY HAS BEEN CALLED INTO QUESTION"
Noting that significant progress had been made toward a potential deal in recent weeks, Carney continued:
"Earlier this week, we believed we were moving toward a mutually beneficial agreement. However, in recent days, the U.S. proposed new terms that are economically unviable, unfair, and undermine the clear benefits for Canada, and has called into question the credibility of any agreement. In short, they asked for too much and offered too little. As a result, I have suspended trade negotiations with the U.S."
Carney assessed, "Canada will now respond dollar-for-dollar to Washington's new tariffs in order to protect workers, farmers, families, and businesses. Our response will focus on sectors such as steel, dairy products, white goods, agricultural equipment, paper, and electronics."
Stressing that this step was taken to protect and defend sectors and enable them to compete with U.S. products in the Canadian market, Carney announced they will reveal the details of new tariff measures in the coming days.
Carney stated that the new tariffs will come into effect on September 8, after Labour Day.
"THEY WANTED TO RESTRICT OUR CAPACITY FOR OTHER TRADE AGREEMENTS"
Carney said they know some of these measures will increase costs and reduce options for Canadians, which is why they took this step reluctantly.
Carney stated, "But we are also confident that this step is in Canada's interest. By rejecting a bad deal, standing with Canada, and focusing on what we can control, we will build a strong Canada for everyone."
Stressing that Canada is, in many respects, a preferred trading partner for countries around the world, Carney argued that the U.S. "wanted to restrict" the country's capacity to strike other trade agreements.
Recalling that in the spring, he warned that the U.S. was "trying to break Canada" in order to have it, Carney noted the following:
"I promised we would never let that happen. We are keeping that promise. Canada is growing stronger and becoming less dependent on America. We are already gaining much more for ourselves than they could ever take from us, and we are only at the beginning."