Canada hits back with up to 50% tariffs on US goods, rejects trade limits

Canada has imposed retaliatory tariffs of up to 50% on US steel, agricultural machinery, electronics, and dairy products, effective September 8, after trade talks collapsed. Prime Minister Mark Carney rejected the US proposal as a "bad deal" and vowed to protect Canada's commercial sovereignty. The tariffs match Washington's previous duties on roughly $20 billion in Canadian imports. Carney accused the US of demanding last-minute conditions that would restrict Canada's ability to sign new trade agreements, stating "they asked for too much and offered too little." He also cited threats against French language and Quebec culture. US Trade Representative Jamieson Greer dismissed further dialogue and promised retaliation, though he claimed the offer included reductions for steel, aluminum, and autos. The dispute complicates T-MEC renegotiations, with Carney emphasizing Canada must reduce its 70% export dependence on the US.