The Canadian Prime Minister confirmed a dollar-for-dollar retaliation against the United States after trade negotiations failed, prompting the U.S. to impose a 50% tariff on several Canadian imports.
Foreign news agencies reported that last-minute trade talks between the U.S. and Canada collapsed, leading the U.S. to officially enforce tariffs up to 50% on certain Canadian imports, while the Canadian Prime Minister vowed to respond.
On Saturday, 22 Aug 2026 GMT+7, Canadian Prime Minister Mark Carney announced the suspension of negotiations, ordered his team to return to Ottawa, and confirmed he would impose tariffs on U.S. imports as a dollar-for-dollar tax retaliation. He stated the U.S. last-minute offer was unfair and raised doubts about the agreement's credibility.
U.S. Trade Representative Jamison Greer said Canada refused to sign the deal despite the U.S. presenting its best offer, claiming Canada sought new terms and withdrew from the previously agreed agreement.
Reports indicate negotiators discussed reducing U.S. import tariffs on Canadian steel and aluminum from 50% to 25%, and lowering car tariffs from 25% to 15%. In exchange, Carney requested Canadian provinces to restock U.S. alcoholic beverages on store shelves.
The U.S. wants Canada to lift existing counter-tariffs, adjust dairy quotas to allow more U.S. cheese into the Canadian market, and end bans on U.S. alcoholic beverage sales in various Canadian provinces.
Currently, the U.S. enforces 50% customs duties on Canadian products including wine, dairy, cement, clothing, and hockey equipment, accounting for about 5% of Canada's total exports. This excludes separate tariffs already applied to Canadian steel, aluminum, cars, and processed lumber.
Economists estimate that these tariffs could cause Canada to lose up to 90,000 jobs and reduce the country's GDP by 0.3% to 0.6%.
The Canadian Chamber of Commerce warned that the latest U.S. tariff barriers severely damage North America's competitive edge.
Many Canadians and local government leaders, including those in Ontario and British Columbia, have expressed support for the Prime Minister's retaliation, emphasizing that "our politeness should not be mistaken for weakness."
Follow international news:https://www.thairath.co.th/news/foreign
Source:bbc