Canada Imposes Retaliatory Tariffs on US After Trade Talks Collapse

Canada announced retaliatory tariffs against the United States on Tuesday after trade negotiations collapsed, escalating the dispute. Prime Minister Mark Carney signaled Ottawa may abandon dollar-for-dollar reciprocity for more targeted measures to protect Canadian workers and businesses. A Canadian official said the tariff package would be unveiled today, marking the sharpest trade crisis between the neighbors in decades. Carney stated Monday that officials were exploring options beyond reciprocal tariffs, while President Trump demanded compliance or threatened 50% duties on Canadian cars, parts, and steel starting January 1, 2027. US tariffs of 50% on some Canadian goods took effect August 22, prompting Canada to suspend talks. Canada's auto and steel sectors face the heaviest impact amid 10% unemployment, while US states like Michigan and Ohio rely on Canadian supply chains, potentially affecting Trump politically before midterm elections.