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[INTERNATIONAL] · Canada, United States · 4 sources

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Canada rejects Trump's tariff threats and vows retaliation

Canadian Prime Minister Mark Carney has rejected trade conditions proposed by U.S. President Donald Trump, accusing the Washington administration of attempting to undermine Canada's core industries. The tension follows Trump's announcement of a planned 50 percent tariff on Canadian vehicles, auto parts, and steel, set to take effect on January 1, 2027.

Carney stated that Canada would not accept being treated as a “subsidiary” of the United States and noted that recent negotiations failed because the U.S. sought to disadvantage Canadian automotive, steel, and aluminum sectors. In response to the threats, Canada has announced it will implement retaliatory tariffs on a “dollar for dollar” basis starting September 8.

Trump justified the proposed measures by citing a 60 billion dollar trade deficit and claiming that Canada is overly dependent on the U.S. market, alleging that 95 percent of its trade is conducted with the United States. Carney countered this by emphasizing Canada's role as a vital provider of energy and critical minerals to the American supply chain.

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Canada · Donald Trump · Mark Carney · United States

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