Toronto, Aug 2026 : Trade negotiations between the United States and Canada have broken down, with Washington announcing plans to impose 50 per cent tariffs on certain Canadian imports, prompting Prime Minister Mark Carney to warn of immediate retaliation.
Carney said Canada had suspended trade negotiations with the United States and recalled its negotiators to Ottawa after last-minute proposals from Washington were deemed “unfair” and “uneconomic”. He said the changes also raised serious questions about the reliability of any potential agreement.
In a statement, Carney said the United States planned to impose a 50 per cent tariff from midnight on approximately $28 billion worth of Canadian goods. Canada, he added, would respond with matching tariffs to protect domestic workers and businesses.
“At midnight tonight, the US intends to impose a 50 per cent tariff on roughly $28 billion of Canadian goods. Canada will match those tariffs dollar for dollar to protect our workers and businesses,” Carney said.
The Canadian government is also preparing additional measures to support companies and workers affected by the escalating trade dispute. Carney said the new assistance would build on nearly $25 billion in support already provided by Ottawa over the past 18 months.
The Prime Minister said Canada’s response would form part of a broader economic strategy aimed at strengthening the domestic economy while reducing the country’s dependence on its largest trading partner.
“From day one, we have been focused on building our strength at home and diversifying our partnerships abroad,” Carney said.
Despite the latest confrontation with Washington, Carney struck an optimistic tone about Canada’s economic prospects. He said the country’s economic growth was accelerating and predicted that Canada was on track to record the second-fastest economic growth among G7 nations over the next two years.
He also highlighted employment and investment indicators to argue that the Canadian economy remained resilient despite trade uncertainty.
According to Carney, Canada was currently creating jobs at four times the rate of the United States. He also said Canadian exports to markets outside the US were expected to double over the next decade.
Foreign direct investment into Canada, he added, had reached its highest level in two decades and was running at twice the rate of its nearest G7 competitor.
Carney further claimed that Canada now ranked as the world’s most attractive destination for infrastructure investment, pointing to the country’s natural resources, skilled workforce and expanding economic partnerships.
“Canada has what the world wants. And we will not allow any nation to determine our future,” Carney said.
The latest tariff dispute threatens to further strain economic ties between the two neighbouring countries, whose economies are deeply integrated through manufacturing, energy, agriculture and cross-border supply chains.
Carney said Ottawa would continue pursuing measures designed to strengthen Canada’s economic independence while protecting domestic businesses from the impact of the new US tariffs.
“We will set our own course to keep building Canada strong for all,” he added.
(Disclaimer :The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)
