Canada to announce response to Trump's new tariffs

Canada has said it will announce its response to President Donald Trump's new tariffs, as neighbours that used to be close allies spiral into a trade war.

In response to what it called "these challenging times," the Canadian government said last night that the ministers of finance, industry, labour and other officials would hold a press conference in Ottawa to detail Canada's answer to the new levies.

Canada and the United States failed on Friday to reach a deal to avert new 50% US tariffs on select Canadian goods after weeks of talks. The duties took effect on Saturday, and Ottawa laid out plans for retaliation.

Mr Trump added yesterday that he would double tariffs on Canadian autos starting next year to 50%.

The current US tariff impacting Canadian autos stands at 25% for non-US content, while imported steel to the United States generally faces a 50% duty.

After rejecting what he called a "bad deal," Canadian Prime Minister Mark Carney announced retaliatory tariffs effective from 8 September.

He said these will target US steel and dairy industries, while also covering sectors like agricultural equipment, paper and electronics.

The government statement said ministers will "announce new measures to protect and support Canadian workers and businesses during these challenging times."

Mr Carney said yesterday that the goal of trade talks with the US "has always been to get the best deal for Canadians, never a deal at any price or on any time frame."

"We learned that, during the negotiations, the Americans wanted to destroy our major industries - including the automotive, steel, and aluminum sectors - through unfair negotiating terms. And that is one of the main reasons why we said no."

He stressed that building domestically and diversifying trade abroad has been "plan A from the start."

Over the weekend Carney added that, at the 11th hour, US negotiators also sought restrictions on Canadian trade deals with other countries.

US negotiators made unacceptable "threats" to the French language and "Quebec culture" too, he said, referring to eastern Canada's French-speaking province.

At a separate event, however, US Vice President JD Vance blamed Canada's "unreasonable last-minute demands."

The United States is by far Canada's biggest trading partner, with Canadian exports to its neighbour representing 70% of its overall total.

Canada is the United States' second biggest trading partner in goods this year, behind Mexico, government data showed.

Three in four Canadians support the Carney government's decision to walk away from trade talks, according to polling released on Sunday by the Angus Reid Institute.

However, the research group noted that two in five Canadians have some fear about their jobs.

Ontario Premier Doug Ford criticised Trump's tariff threat on autos and warned that an electricity surcharge was on the table. In an earlier phase of the dispute, Ontario imposed a 25% surcharge on electricity exports to three US states.

Mr Trump lashed out at Mr Ford online, warning of "far worse" consequences.

The White House had alleged "discriminatory treatment" by Canada against US alcohol, automobile and dairy products in rolling out the 50% tariffs.

Mr Trump delayed their implementation by three days last week, but both sides failed to reach an agreement after talks went down to the wire.

The latest duties hit about 5.5% of Canadian goods entering the US, worth some $20 billion, impacting products like hockey sticks and cement.

Mr Trump charged that "Canada has been ripping off the United States of America for years," adding "we don't need Canada, they need us."

US Trade Representative Jamieson Greer told The New York Times on Saturday that the Trump administration offered to eliminate a 10% tariff on softwood lumber, and reduce the 25% autos tariff.

The US was also ready to cut steel tariffs from 50% to 25% for most Canadian steel, said Mr Greer.

Besides the tariffs fight, the US and Canada have to agree on revisions to the US-Mexico-Canada free trade agreement (USMCA) which Mr Trump has declined to renew in its current form.

Mr Trump has also repeatedly antagonised Canadians with his threats to make Canada a US state and calling Mr Carney and his predecessor Justin Trudeau "governor" - as if they were US politicians, not prime ministers of an other country.