Canada ends U.S. trade talks as Carney announces dollar-for-dollar tariffs

Canada has ended its latest trade negotiations with the United States and will impose dollar-for-dollar tariffs on U.S. goods in response to new American duties on Canadian products.

Prime Minister Mark Carney disclosed this via his X account on Saturday, saying Canada could not accept what the United States was offering or the concessions it was demanding.

Ottawa is preparing new tariff measures that will take effect on September 8, 2026, marking a further escalation in trade tensions between the two countries.

What Mark Carney is saying

Carney said Canada had spent more than a year negotiating a new comprehensive trade agreement with the United States, describing Ottawa’s approach as pragmatic, patient and persistent. He said Canada’s objective had always been to secure the best possible agreement for Canadian workers, farmers, families and businesses, rather than sign a deal at any cost or within a particular timeframe.

• “We cannot accept what the United States is offering us, and we refuse to grant them what they are asking of us,” Carney said.

He added that Canada would apply equivalent duties, “dollar for dollar,” to those imposed by the United States to protect Canadian workers, farmers, families and businesses.

Carney said he ordered Canadian negotiators to return to Ottawa late Friday after the two sides failed to reach an agreement.

The Canadian government is expected to unveil details of the new tariff measures in the coming days.

The new duties will take effect on September 8, the Tuesday following Labour Day. Carney also said the government would introduce additional measures to support Canadian workers and businesses affected by the U.S. tariffs,

Backstory

The development follows the United States’ decision to impose 50% tariffs on about $20 billion worth of Canadian goods, effective Saturday, according to Reuters.

• The duties cover products including wine, dairy, furniture, electrical equipment and hockey equipment, as well as some goods previously covered by the United States-Mexico-Canada Agreement.
• The tariffs followed failed last-ditch trade talks between Washington and Ottawa. Despite progress earlier in the week, disagreements over steel, aluminium, automobiles, softwood lumber and other measures prevented a deal.

The new tariffs affect about 5% of Canada’s exports to the U.S., but have increased uncertainty for cross-border businesses and further strained relations between the two countries, Reuters reported.

Get up to speed

In March 2025, then-Canadian Prime Minister Justin Trudeau announced that Canada had imposed 25% tariffs on $155 billion worth of U.S. imports in response to Washington’s trade measures. This followed the United States’ decision to implement 25% tariffs on products from Canada and Mexico, alongside increased levies on goods from China.

• Trudeau said $30 billion worth of goods would be targeted immediately, with the remaining $125 billion to follow in 21 days.
• The U.S. administration, led by President Donald Trump, justified the tariffs as a measure to protect American jobs and manufacturing while addressing illegal migration and drug trafficking.
• Experts warned that the measures could lead to higher prices for consumers in the U.S. and abroad.

Trump’s team characterized the tariffs as a key negotiating tool, with the president citing the need to combat the opioid crisis, particularly the influx of fentanyl.

Trudeau countered that less than 1% of fentanyl intercepted at the U.S. border originated from Canada, calling the tariffs unjustified.

What you should know

The Canada-U.S. tariff dispute comes as the United States continues to reshape its global trade policy, with Nigeria also among countries facing new U.S. import duties.

• In July 2026, Nairametrics reported that the U.S. placed Nigeria under a 12.5% tariff regime covering most imports, although crude oil, liquefied natural gas, other petroleum products and some food items are exempt.
• According to the Centre for the Promotion of Private Enterprise, the exempted petroleum products account for more than 80% of Nigeria’s merchandise exports to the U.S.
• This limits the immediate impact of the tariff on Nigeria, although non-oil exporters in agriculture and manufacturing could face reduced competitiveness.

Nigeria’s exports to the U.S. accounted for 5.56% of its N21.6 trillion total exports in the first quarter of 2026. The U.S. was Nigeria’s fifth-largest export destination during the period.