US-Canada Trade Talks Collapse — Carney Declares Canada 'At War,' Sets Sept. 8 Retaliatory Tariffs

Intensive last-minute negotiations between Ottawa and Washington broke down late Friday without a deal, hours after Trump's 50% Section 338 tariffs on roughly $20 billion of Canadian dairy, alcohol, and motor-vehicle goods took effect at 12:01am EDT. At a Saturday press conference, Prime Minister Mark Carney said Canada had pursued every option but ultimately walked away because the US 'asked too much and they offered too little,' citing unacceptable last-minute American demands on auto-content rules and restrictions on Canada's other trade partnerships. Carney announced Canada would impose 'dollar-for-dollar' retaliatory tariffs on US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics effective September 8. Asked whether Canada was now in a trade war, Carney said bluntly: 'You're at war when you get attacked. We got attacked.' He also criticized the shifting US rationale for the tariffs, saying 'its signature was written in pencil.'