Kathmandu— Canadian Prime Minister Mark Carney announced Saturday that Canada will impose retaliatory tariffs on U.S. goods starting September 8, hours after the United States enacted a 50 percent tariff on nearly $20 billion worth of Canadian imports following failed trade negotiations between the two countries. Carney described the move as a “focused response” to what he characterized as unfair and economically damaging policies from Washington, accusing the U.S. of making last-minute demands that undermined potential agreement and seeking to restrict Canada’s future trade alliances. The escalating tariff dispute marks another point of contention in the increasingly strained relationship between Canada and the United States under President Trump's administration.

Escalating Trade Tensions

The imposition of U.S. tariffs follows weeks of uncertainty and stalled negotiations, initially announced in July as part of an ongoing trade dispute. Despite efforts to reach a deal, negotiators failed to finalize an agreement by the revised deadline on Friday night, leading to the implementation of the 50 percent duties. Carney explained that Canada walked away from discussions because the U.S. “asked too much and they offered too little,” alleging that new terms proposed in recent days were uneconomic and unfair.

Disputed Demands and Restrictions

Carney specifically cited last-minute demands related to car imports and restrictions on Canada’s ability to pursue new trade deals as key sticking points. “The US introduced in the last hours efforts to restrict our ability to have other trade deals,” he said, adding that such limitations were unacceptable. He also criticized what he described as a shifting rationale from the U.S. for imposing the tariffs, referencing President Trump’s comments citing issues ranging from drug trafficking to wildfire smoke as justification.

US Response and Future Outlook

U.S. Trade Representative Jamieson Greer stated there are no future talks planned with Canada and that the US would respond to Canada's retaliatory measures. Greer claimed Canada had previously enjoyed a favorable trade arrangement but rejected the latest offers. Despite the escalating tensions, Carney indicated Canada will focus on strengthening its trade relationships with other countries, stating, “We can’t control the storm that blows in from Washington,” and vowing to diversify trading partnerships.

A History of Conflict

Since taking office in 2025, Carney has frequently clashed with Trump, who has consistently employed tariffs as a negotiating tactic. The Canadian Prime Minister acknowledged Trump’s disruptive influence on global politics, noting that the U.S. administration often operates with shifting priorities and unreliable commitments. “We recognised that, sometimes, its signature was written in pencil,” he said.

Carney characterized the situation as an attack on Canada, signaling a firm resolve to defend Canadian interests despite the escalating trade war. The implementation of retaliatory tariffs is expected to further strain relations between the two countries and potentially disrupt North American supply chains.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.