France 24 is reporting that Canadian Prime Minister Mark Carney vowed his country will match US tariffs "dollar for dollar" to protect its workers and businesses. This pledge follows the implementation of hefty US tariffs on some Canadian products Saturday, after days of failed negotiations between Washington and Ottawa.
US Trade Representative Jamieson Greer said Friday that Canada declined to finalize a trade deal under terms agreed upon earlier in the week. Greer noted this was despite Washington's offers for tariff reductions in sectors such as steel and aluminum. The new 50% duties are expected to impact approximately $20 billion of Canadian exports to the United States. President Donald J Trump had previously expressed optimism for a deal, citing his "good relationship" with Carney.
Carney, however, stated that "last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal." Canada's top negotiator Dominic LeBlanc indicated more work was needed after Friday's talks. The White House had alleged "discriminatory treatment" by Canada against US alcohol, automobile and dairy products, specifically mentioning Canada's removal of US alcohol and wine from liquor stores as a retaliatory measure.
Canada has been seeking relief from US tariffs on autos, steel and aluminum, which have impacted its economy and strained the trade relationship. Carney emphasized the need for Canada to diversify and reduce its reliance on the United States, which accounts for about 70% of Canadian exports. The United States and Canada also still need to agree on revisions to the North American free trade agreement, USMCA, which Trump declined to renew last month.