Carney says retaliatory tariffs on U.S. to take effect next month

“We cannot accept what they’ve offered, and we will not give what they’ve asked,” said the prime minister.

The prime minister was joined by Canada-U.S. Trade Minister Dominic LeBlanc and Canada’s chief trade negotiator Janice Charette.

Carney said Canada will match Washington’s new tariffs dollar-for-dollar and that the levies will be targeted at sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper and electronics. He said more details on those retaliatory measures, as well as supports for affected sectors, will be announced in coming days.

The counter tariffs are set to come into force on Sept. 8, the day after Labour Day.

Carney is meeting virtually with his cabinet Saturday, followed by a meeting with premiers.

The prime minister said in a statement late Friday that last-minute changes in the U.S. proposed terms were “unfair, uneconomic, and called into question the reliability of any deal.”

On Saturday, Carney said that the U.S., “at the last hours,” introduced efforts to restrict Canada’s ability to have other trade deals.

“We believe in free trade, with a partner of choice in many respects with countries around the world, and the Americans wanted to restrict that,” he said. “Unacceptable.”

He said there were also efforts to restrict Canada’s protections of language and culture.

Carney said the government will outline Canada’s plan for counter tariffs and measures to support Canadian workers and businesses in the coming days.

“We’re going to hit back, and we are going to provide tariff protection where we can where it’s relevant,” he said. “We will do whatever it takes to support these businesses.”

The new U.S. tariffs target $28 billion in Canadian goods ranging from hockey sticks and honey to essential oils and dairy products.

U.S. Trade Representative Jamieson Greer said Friday that the U.S. and Canada had “declined” to finalize a tentative agreement, and laid the blame entirely on Canada.

“Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days,” said Greer.

“In addition, Canada is continuing to maintain its prolonged retaliation against the United States, including, among other things, flat-out prohibitions on certain American goods and services.”

Greer told reporters the failed deal represented a “missed opportunity,” noting that the U.S. was offering significant tariff reductions on steel, aluminum, autos and lumber in exchange for concessions from Canada.

He said the deal also included an economic and national security partnership, as well as the announcement of formal U.S.-Mexico-Canada agreement negotiations.

Greer told Fox News Saturday morning that there were no new talks planned with Canada. He said the U.S. was moving forward with measures that respond to Canadian retaliation.

The Trump administration did not extend CUSMA in July. That triggered an annual rolling review of the trade deal for up to a decade, at which point it would expire if all three countries cannot come to an agreement for an extension.

Mexico and the United States have launched official CUSMA negotiations, but Ottawa and Washington have not started such talks.

Earlier Friday, U.S. President Donald Trump said a deal with Canada was “moving along,” though LeBlanc told reporters there was still “more work to do” to seal a trade deal.

Trump has not yet posted on social media since the deal fell through. Since Friday night, the president has only posted about construction of the White House ballroom.

After days of silence, Ontario Premier Doug Ford said on social media late Friday that the prime minister has his “full support” for a strong response.

“As we fight to protect Canadian sovereignty and economic security, everything needs to be on the table,” said Ford. “Ontario is ready to do its part.”

Ford suggested to Carney in a letter Monday that Canada respond to new tariffs with a dollar-for-dollar approach.

“We cannot back down in the face of economic coercion,” he said in the letter.

Ford also said electricity, energy and critical minerals infrastructure should contribute to Canada’s negotiating leverage. He said the federal government should also consider retaliatory tariffs on imports from “politically significant states to the current administration’s base of support.” He named Alabama, Arkansas, Florida, Iowa, Missouri, Montana, Texas and Wisconsin.

“Products from these states should face the full force of Canada’s response,” he said.

Carney, however, seemed reluctant Saturday to include energy and critical minerals as a bargaining chip in negotiations. Carney has previously suggested that Canada’s reputation as a reliable supplier could take a hit if it started using energy exports as leverage in trade talks with the United States.

“We have a range of other options to protect our industry,” the prime minister told reporters Saturday. “We have considerably ramped up development of critical minerals … much less of that development has been related to the United States than it would have been if we were not having these trade issues.”

This report by The Canadian Press was first published Aug. 22, 2026.

Catherine Morrison and David Baxter, The Canadian Press

by The Canadian Press

Carney says retaliatory tariffs on U.S. to take effect next month

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