Canada declares trade war as Carney vows dollar-for-dollar tariff response

Canadian Prime Minister Mark Carney on Saturday declared that the United States had started a trade war, after high-level trade negotiations between the two countries collapsed late Friday. Carney said Washington had asked for "too much" and offered "too little," leaving Canada with no option but to respond in kind.

Carney: 'You're at war when you get attacked'

"They asked too much and they offered too little," Carney said at a press conference. "You're at war when you get attacked." He confirmed Canada would match US tariffs "dollar-for-dollar" beginning September 8, covering levies on steel, dairy, appliances and electronics. Canada's counter-tariff details are to be released in the coming days.

New US tariffs cover $20 billion in goods

The breakdown of talks triggered a fresh wave of US tariffs — set at 50% — on approximately $20 billion (£15 billion; C$28 billion) of Canadian imports, or about 5% of all Canadian exports to the US. Products affected include wine, dairy products, cement, clothing and hockey equipment — items previously shielded by the North American Free Trade Agreement.

Broad political support for Carney

Leaders of all major Canadian federal parties, including the Conservative opposition, voiced support for the prime minister's position. Provincial leaders across the country also rallied behind the response. US President Donald Trump had not commented publicly as of Saturday morning.

Both sides had entered the final round of talks with optimism earlier in the week, but negotiations collapsed after each accused the other of making last-minute demands. The breakdown upends one of the most deeply integrated trading relationships in the world, with no clear path to resolution in sight.

Trump Claims Canada Wants US State Status

In a new escalation, President Trump claimed that Canada is seeking the benefits of being a US state. Canadian Prime Minister Mark Carney announced retaliatory tariffs, saying he was reluctantly forced to act and accused Washington of starting a trade war. The standoff marks a significant deterioration in bilateral trade relations.