Staff Correspondent, Dhaka:
Canada is preparing to impose new tariffs on selected US goods after trade negotiations with Washington broke down, marking another setback in relations between the two longtime allies.
Prime Minister Mark Carney said Canada would introduce “dollar-for-dollar” tariffs from September 8 on products including US steel, electronics, appliances, agricultural equipment, pulp and paper, and dairy goods. The move comes in response to US tariffs of up to 50% on several Canadian products.
The failed negotiations followed three days of intensive talks, with both sides blaming the other for the breakdown. Carney said Washington’s latest demands were economically unfavorable and could have limited Canada’s ability to negotiate future trade agreements independently.
The dispute also exposed disagreements over the automotive sector. Canada sought favorable tariff treatment for medium- and heavy-duty trucks alongside light-duty vehicles, while the US resisted the proposal. The disagreement could affect Canadian manufacturing operations and the competitiveness of vehicles produced in the country.
The escalating tariff measures carry broader economic risks for Canada, particularly for industries heavily dependent on the US market. Canada sends nearly 70% of its exports to the United States, making diversification difficult despite Ottawa’s efforts to build new trade and security partnerships.
For Washington, continued retaliation could further complicate the future of the US-Mexico-Canada trade framework. The dispute therefore extends beyond tariffs, raising questions about the stability of North American economic integration and the reliability of the two countries’ long-standing trading relationship.
