Canadian Prime Minister Mark Carney declared the United States’ new tariffs on Canadian goods a “miscalculation” that is intended to “hurt and divide us.” He said he left the trade talks because he never wanted to compromise Canadian sovereignty.

“They asked too much and offered too little,” Carney said in a speech to Canadians. The Prime Minister added that Canada will match the U.S. tariffs dollar‑for‑dollar from 8 September, covering steel, dairy, appliances, electronics and more.

Both sides had been optimistic about a deal earlier in the week, but talks collapsed Friday night after each side accused the other of last‑minute changes that were unfair and uneconomic.

With Canada doomed to face new 50% U.S. tariffs on a wide range of goods, the Prime Minister warned he would react “reluctantly” to protect national interests. Counter‑measures will be announced in the coming days, he said.

The collapse follows more than a year of on‑and‑off discussions, heightened by a U.S. deadline that threatened further tariffs. Canada and Mexico had sought renewing the US‑Mexico‑Canada Agreement (USMCA) for a further 16 years, a request the U.S. declined to accept in its current form.

Carney underscored that the failure of the trade talks hurt the North American free trade partnership. He cited the U.S. policy of tariffs, arguing they boost domestic manufacturing and jobs, while critics point out they raise consumer prices and disrupt global supply chains.