Canada pledges to match US 50% tariffs after trade talks collapse, Mark Carney says

Canada said it will match the United States’ planned 50% tariffs after trade negotiations between the two countries ended without an agreement. The decision follows talks that were extended for three days beyond an initial deadline, but the sides did not reach a final package by midnight, prompting Ottawa to move from negotiations to retaliation planning, according to Mark Carney.

Carney, speaking after the talks ended, argued that Washington’s late modifications to the proposed terms were “unfair, uneconomic,” and undermined the basis for a deal. He said the last-minute changes introduced uncertainty and raised questions about whether the United States’ final position reflected commitments made earlier in the process.

Carney said Canada’s response would be direct and sized to mirror the US measures, promising to match tariffs “dollar for dollar.” The pledge effectively sets up a tariff-to-tariff alignment between the two countries rather than a return to the negotiation table on the same timeline, making the outcome a significant near-term change for Canadian importers and exporters.

The breakdown occurred despite an additional window that both sides had reportedly carved out to try to reach agreement. Negotiators did not finalize a deal during the extended talks period, and with the deadline passed, Canada committed to implementing counter-tariffs rather than allowing the tariff threat to remain one-sided.

The dispute highlights how quickly trade talks can shift when one party alters the terms late in the process. In this case, Carney described the US proposals submitted near the end of negotiations as the key obstacle, suggesting the talks failed not only due to disagreement over the headline tariff level but also over the final structure and conditions attached to the package.