Kathmandu— Canadian Prime Minister Mark Carney announced Saturday that Canada will implement retaliatory tariffs on the United States beginning September 8, targeting industries like steel, dairy, and electronics after Washington imposed a 50 percent duty on $20 billion in Canadian goods. The move follows failed negotiations between the two countries, escalating a trade dispute with potential economic consequences for both nations. Carney stated the tariffs are necessary to protect Canadian workers, farmers, families, and businesses, while US President Donald Trump criticized Canada's approach via social media.

Failed Negotiations Trigger Retaliation

The announcement of retaliatory tariffs came after days of intense negotiations broke down on Friday. Carney explained that the United States proposed new terms during talks which he deemed “uneconomic, unfair and undermined the net benefits for Canada,” including demands to limit Canada’s ability to pursue new trade agreements. He stated, “We cannot accept what they’ve offered, and we will not give what they’ve asked.”

The Canadian Prime Minister also cited unacceptable “threats” made by US negotiators towards French language and Quebec culture during the discussions.

US Tariffs Target Key Canadian Exports

The initial tariffs imposed by the United States cover approximately $20 billion worth of goods, representing 5.5 percent of Canada’s total exports to the US. Sectors affected include wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment.

Canada will respond with tariffs on US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, as well as mirroring some of the US's previous targets within Canada. The government plans to release specific details of its response in the coming days.

Economic Impact and Public Support

Experts predict the trade war will have a significant impact on both economies. Al Jazeera’s David Mercer reported from Calgary that costs and prices are expected to rise, potentially leading to unemployment and bankruptcies for some small and medium-sized businesses. However, Carney is framing the situation as an opportunity to diversify Canada's trade relationships with countries in Asia and Europe.

A recent poll by Leger indicated strong public support for a firm stance against the US, with 56 percent of Canadians favouring no further concessions. Ontario Premier Doug Ford also voiced his support for Carney’s decision to retaliate, stating that previous proposals from the US were detrimental to key sectors like auto, steel and manufacturing.

Canada will announce support measures next week for industries impacted by the new US duties, with those measures potentially lasting for years. The US Trade Representative indicated no plans for further negotiations.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.