Ottawa: Canada has pledged to impose retaliatory tariffs on US goods after new 50% tariffs introduced by President Donald Trump came into force over the weekend, further deepening trade tensions between the two longtime allies.Prime Minister Mark Carney said Canada will begin implementing "dollar-for-dollar" retaliatory measures on September 8, targeting a range of US products, including steel, dairy products, appliances, agricultural equipment, pulp and paper, and electronics.The latest US tariffs affect about US$20 billion worth of Canadian exports, equivalent to roughly 5% of Canada's annual exports to the United States.Carney said Canada had been willing to negotiate a compromise, including the removal of some existing retaliatory measures, but concluded that Washington's final demands were unacceptable."We're going to hit back," Carney said, accusing the United States of using economic integration as a weapon.The new tariffs apply to a broad range of Canadian goods, including agricultural products, wine, cement, clothing, furniture, cosmetics and sporting equipment. Some products previously covered under the US-Mexico-Canada Agreement (USMCA) are also affected.Trump administration officials have defended the measures, arguing that Canada maintains unfair trade practices affecting American exports.US Trade Representative Jamieson Greer said Washington remains prepared to take additional action if Canada proceeds with its planned retaliation. He also claimed the US had proposed tariff reductions on sectors such as steel, autos and lumber, but Canada rejected the offer.The growing dispute marks one of the most significant breakdowns in US-Canada trade relations in decades.Canada sends approximately 72% of its exports to the United States, making the American market critical to its economy.Economists warn that higher tariffs are likely to increase costs for businesses and consumers on both sides of the border, while creating additional uncertainty for industries dependent on cross-border trade.The trade dispute intensified after Canada withdrew from last-minute negotiations on Friday, paving the way for the tariffs to take effect on Saturday.
