In a statement on Friday, Canadian Prime Minister Mark Carney<\/a> said that \u201clast-minute changes in the U.S. proposed terms were unfair, uneconomic<\/a>, and called into question the reliability of any deal.\u201d <\/p>\n Read More on News<\/p>\n The U.S. side, meanwhile, described the breakdown<\/a> as \u201ca missed opportunity for Canada to partner with the United States, which is the fastest growing economy<\/a> in the G7.\u201d<\/p>\n The tariffs are being imposed under Section 338 of the Tariff Act of 1930<\/a>, which the Office of the U.S. Trade Representative (USTR) said permits the president to \u201cimpose duties of up to 50 percent on imports of a foreign country to offset the burden or disadvantage from a foreign country\u2019s unequal imposition on or discrimination against the commerce of the United States.\u201d<\/p>\n The duties target motor vehicles, alcoholic beverages, and dairy, and are being used \u201cto offset Canada\u2019s unreasonable and discriminatory measures against these products,\u201d it said.<\/p>\n And the collapse in negotiations means 50 percent duties on hundreds of Canadian products together worth around $20 billion have now taken effect.<\/p>\n \u201cCanada, through discrimination against or an unreasonable and unequal imposition on U.S. auto and auto parts exports, burdens U.S. commerce but not the commerce of other countries and disadvantages U.S. commerce compared to the commerce of other countries,\u201d the White House wrote in July<\/a>.<\/p>\n Alcohol<\/p>\n Last year, several Canadian provinces banned the sale of U.S. alcohol in response to President Trump\u2019s tariffs. Many continue to do so, creating difficulty for American merchants<\/a>.<\/p>\n Prime Minister Carney had requested that these bans be shelved to help the negotiations with the U.S., and NBC News reports that the issue had become a key point of contention<\/a> between the two sides.<\/p>\n The administration said that a 50 percent duty<\/a> on the country\u2019s alcohol would help to \u201coffset the burden or disadvantage on U.S. commerce from Canada\u2019s discrimination.\u201d<\/p>\n Dairy<\/p>\n The U.S. had been lobbying Canada to adjust its dairy quotes to grant more access for American producers, and has accused the country<\/a> of denying it the benefits \u201cCanada affords to materially similar dairy commerce from certain other foreign countries.\u201d<\/p>\n As a result, dairy products, including milk, cream, whey, caseinates, lactose and cheese ingredients have now been hit with the new 50 percent duty.<\/p>\n Other Targeted Products<\/p>\n The government\u2019s announcements on motor vehicle and alcohol duties also cover hundreds of unrelated goods, meaning the new tariffs extend well beyond the three categories outside by the USTR.<\/p>\n This includes<\/a> agricultural products such as seeds; food products like bakery mixes; textiles and clothing; cosmetics; furniture and household goods; electronics and machinery; diamonds; and toys.<\/p>\n The new duties are in addition to existing tariffs on Canadian steel, aluminum and lumber.<\/p>\n Unlike past tariffs on Canadian goods, the U.S. has said that there will be no exemptions for those covered by the U.S.-Mexico-Canada Agreement (USMCA). However, the White House has confirmed exemptions for energy products, potash, fish, critical \u2060minerals and those already covered by Trump\u2019s Section 232 tariffs.<\/p>\n The tariffs were initially meant to take effect on Wednesday<\/a>, but Trump postponed this deadline for further negotiations. No further talks have yet been announced.<\/p>\n Canadian PM Mark Carney Vows Response<\/p>\n The new duties apply to around five percent of the $382 billion worth of goods the U.S. imported from Canada last year. But despite their relatively narrow impact on commerce, the tariffs have triggered a sharp response from Ottawa.<\/p>\n \u201cWe have recognized from the beginning that America has changed, and that we will not return to our old relationship,\u201d Prime Minister Carney said in a statement. \u201cOur government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market.\u201d<\/p>\n The prime minister said he would announce further support for Canadian workers businesses in the coming days.<\/p>\n \u201cThe prime minister has my full support for a strong response\u2014tariff for tariff, dollar for dollar,\u201d Ontario Premier Doug Ford posted to X<\/a>. \u201cAs we fight to protect Canadian sovereignty and economic security, everything needs to be on the table. Ontario is ready to do its part.\u201d<\/p>\n The Tariffs Canada Might Impose on US<\/p>\n Announcing the suspension of negotiations shortly before the Friday night deadline, Carney said he would impose reciprocal tariffs on US goods “dollar for dollar”.<\/p>\n As of Saturday, however, Ottawa has not publicly announced which U.S. products could face these new retaliatory tariffs.<\/p>\n Prior to the latest escalation, Canadian countermeasures were focused on sectors such as U.S. steel and aluminum, as well as certain vehicles not covered by the USMCA. <\/p>\n Newsweek has contacted Canada\u2019s finance ministry and Global Affairs Canada\u2014which manages the country\u2019s trade relations\u2014for further comment.<\/p>\n![\"Canadian](\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/08\/AP25126582581760.jpg\"\/)
Which Tariffs Are Taking Effect?<\/p>\n![\"Prime](\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/08\/AP26217792416013.jpg\"\/)
Motor Vehicles<\/p>\n![\"US](\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/08\/GettyImages-2290821820.jpg\"\/)
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