The collapse of trade talks between Canada and the United States on Friday was not a surprise to anyone who’s been watching the trade war. But what happens next is key. In response to the end of talks, and the imposition of 50 per cent tariffs on some 540 product categories by the U.S., Prime Minister Mark Carney said that Canada was going to impose “dollar-for-dollar” tariffs on the Americans.
The 50-per-cent American tariffs affect about five per cent of Canadian exports. The exact nature of the retaliatory tariffs is still to be announced by the Canadian government. But the product codes will probably be very similar to the Canadian retaliatory tariffs of spring 2025, mostly since rescinded. The new Canadian tariffs are due to take effect on the day after Labour Day. The Americans have said they will respond with additional tariffs.