Canada vows to match US tariffs ‘dollar for dollar’ as Trump’s 50% taxes come into force

Canada to Impose Matching Tariffs on U.S. Goods After 50 Percent Duties Take Effect

Canada announced plans to apply equivalent tariffs on U.S. products after 50 percent U.S. duties on selected Canadian exports took effect early Saturday. The measures cover roughly $20 billion in Canadian goods and represent about 5 percent of annual Canadian shipments to the United States.

Prime Minister Mark Carney stated that Canada would match the tariffs “dollar for dollar to protect our workers and businesses.” The affected Canadian products include items from dairy, alcoholic beverages, and motor vehicles, sectors the U.S. administration cited as containing measures that discriminate against American exports.

Negotiations between the two governments ended without agreement. U.S. Trade Representative Jamieson Greer said Canada declined to finalize a deal under terms discussed earlier in the week and introduced new demands that altered prior commitments. Carney attributed the breakdown to last-minute changes in the U.S. proposal, which he described as unfair and uneconomic, and suspended talks, directing Canadian negotiators to return to Ottawa.

The U.S. administration offered Canada what it termed the best treatment available to any major exporter, including elements of an economic and national security partnership. No further talks are scheduled. The tariffs had originally been set for 12:01 a.m. Wednesday but were delayed three days to permit continued discussions.

Bilateral goods and services trade reached $880 billion in 2025. Nearly 72 percent of Canadian goods exports went to the United States that year. Canadian Chamber of Commerce president and CEO Candace Laing stated that the tariffs would raise costs for American buyers and affect Canadian investment and smaller firms.

The duties were imposed under Section 338 of the Tariff Act of 1930, which permits the president to apply import taxes of up to 50 percent on products from countries found to discriminate against U.S. businesses. No prior investigation is required, and the statute sets no time limit on the measures. The administration applied the authority to Canadian dairy, alcoholic beverages, and motor vehicles on the basis of alleged discriminatory treatment in those sectors.

The United States has begun formal discussions with Mexico on revisions to the United States-Mexico-Canada Agreement. Talks with Canada have not started. Barry Appleton, senior fellow at the Center for International Law at New York Law School, noted that Canada had stated in advance it would halt negotiations and retaliate if the tariffs took effect, while the U.S. side had indicated it would not accept retaliation.

A petition calling for the expulsion of U.S. Ambassador Pete Hoekstra has gathered nearly 248,000 signatures since July 21. The petition cites the ambassador’s statements regarding U.S. policy toward Canada.

Carney said Canada recognizes that the bilateral relationship has changed and will not return to its prior form. Additional Canadian government support for affected workers and businesses is expected in the coming days.