Canada will impose tariffs on U.S. goods matching them dollar for dollar after trade talks between the two countries collapsed, Prime Minister Mark Carney said Saturday. The move follows new 50% U.S. tariffs on roughly $20 billion of Canadian goods, and comes just days after a deal to lower existing tariffs appeared within reach.
Canadian Prime Minister Mark Carney said Saturday his country would match U.S. tariffs dollar for dollar, retaliating after trade talks between the two nations broke down late Friday. The breakdown pushed the U.S. to impose 50% tariffs on roughly $20 billion in Canadian goods, a levy that took effect Saturday and covers liquor, electrical equipment and hockey gear.
Retaliation set for next month
Carney said Canada's retaliatory tariffs would take effect next month on the Tuesday after Labor Day, targeting steel, dairy, paper, electronics, appliances and agricultural equipment. According to Investor's Business Daily, the retaliatory tariffs are set to start Sept. 8, and U.S. officials have threatened further escalation if Canada follows through.
A deal seemed close days earlier
The collapse marks a reversal from earlier in the week, when a trade agreement looked likely. President Donald Trump postponed new Canada tariffs late Tuesday, hours before they were set to take effect. The two countries had appeared poised to cut existing 50% tariffs on Canadian steel and aluminum to 25%, though steel imports would still face limits.
The prospective deal would reportedly have also cut duties on Canadian autos to 15% and scrapped a 10% lumber tariff.
Steel and aluminum stocks swing on the news
The prospect of a softer deal had hit U.S. metals producers earlier in the week. Nucor fell 5.85% Wednesday and 9.4% for the week, dropping from near a buy point to below its 50-day moving average. Steel Dynamics dived 7.5% Wednesday and 10.6% for the week despite a Friday bounce, while Cleveland-Cliffs sank 6% Wednesday and 5.3% for the week before regaining its 50-day line. Century Aluminum gave up 4.6% Wednesday and 6% for the week, close to its 2026 lows, while Alcoa, which produces significant aluminum in Canada, climbed 3% Wednesday and 3.7% for the week.
Nucor, Steel Dynamics, Cleveland-Cliffs and Century Aluminum could be among the winners now that the trade talks have broken down.
Sources: MarketWatch (snippet-based), Investor's Business Daily
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