tariffs

New Delhi says it has ‘made clear’ its determination to ‘protect its trade and economic interests’.

India has warned the United States that new measures to levy tariffs over the purchase of Russian oil could impact ⁠bilateral ties, hours after the US Congress approved a bill that would give President Donald Trump new abilities to punish buyers of Russian oil.

The US House of Representatives on Wednesday passed a sweeping sanctions and tariff bill intended to increase economic pressure on Russia over its invasion of ⁠Ukraine.

The bill targets Russia’s energy and defence sectors, President Vladimir Putin and other senior officials, as well as Moscow’s so-called shadow fleet of tankers used to circumvent Western sanctions.

It also authorises President Donald Trump to impose stiff tariffs of up to 100 percent on countries, including India, to reduce their dependence on Russian oil and gas, and⁠ extend sanctions on Iran.

The bill has been sent to Trump to sign into law.

India’s foreign ministry said on Thursday that it “remains firmly committed to ensuring energy security for its 1.4 billion people”.

The Indian foreign ministry said that it had noted the bill’s passage, adding that New Delhi had raised the issue with various US interlocutors in recent months, and had “very clearly articulated” the potential implications for the bilateral relationship and the international energy market.

“The Indian side has also made clear its determination to take all necessary measures to protect its trade and economic interests,” it said in a statement.

The government would work closely with trade and industry bodies to deal with the legislation’s implications, it added.

India, the world’s third-biggest oil importer, is among the biggest buyers of Russian oil, which is seen as helping Moscow replenish its budget since it launched its full-scale invasion of Ukraine in February 2022 and was hit with ⁠sweeping Western sanctions.

New Delhi has repeatedly sought to resist pressure to reduce its oil trade with Russia, saying its large population and economy need secure, affordable and reliable energy supplies.

WASHINGTON — A trade war between the United States and Canada entered a new phase Tuesday as Ottawa’s retaliatory tariffs on American goods took effect, escalating a dispute that has steadily strained relations between the allies.

Canada’s tariffs, which came into force just after midnight, cover roughly $20 billion in U.S. goods and impose duties of as much as 50% on products, from steel and aluminum to farm equipment, clothing and electronics. The list also reaches into the everyday commerce that binds the two economies, including cheese, seafood and cosmetics.

It was the latest sign that relations between the two neighbors have reached their lowest point in decades, after Trump dismissed Canada as the 51st American state, moved to rename Lake Ontario and mocked its armed forces.

Ottawa’s latest measures are a response to tariffs imposed by President Trump last month on Canadian exports. The two governments had appeared close to a trade deal just a month ago. But talks broke down in dramatic fashion, leaving both sides aggrieved and accusing the other of negotiating in bad faith.

In a post Tuesday, Trump said Canada “has been ripping us off for years” and threatened to respond by removing access for Canadian businesses to key American markets.

“What many do not realize is that the Canadian Government, including Canadian Provinces, have banned American Small Businesses and Companies from selling into their Government Procurement Markets,” Trump wrote. “This is the case even though Canada gets broad access into the massive American Government Procurement Market, including those of our States.

“That is not reciprocity, it is a Canadian Trade Scam. From now on, NO RECIPROCITY — NO ACCESS!” he continued. “I am hereby directing the [General Services Administration], working with the [U.S. Trade Representative], to take all necessary steps to REMOVE Canadian-origin products from GSA’s Multiple Award Schedules unless Canada restores full and fair reciprocity for American Farmers and Companies.”

Canada’s prime minister, Mark Carney, has characterized the confrontation as more than a dispute over tariffs, arguing that demands by a bullying Trump administration threaten Canada’s economic independence.

In a video released Tuesday, Carney argued that in the past, the United States has tried to use tariffs to “break us,” only to have Canada’s economy grow stronger and more diversified. He urged Canadians to buy Canadian and break economic dependency from the United States.

“This won’t be easy, and I won’t pretend otherwise,” Carney said. “But Canadians have faced difficult stretches before, and what has carried us through has never ever been any one measure. It’s always been Canadians looking out for each other.”

Trump, meanwhile, has pressed Canada to make concessions on trade and has warned of further tariffs, including potentially higher duties on Canadian automobiles. He also threatened to ban the sale of aircraft from Canada’s Bombardier unless its products are manufactured in the United States.

“If they want our Market, they must build here, and stop treating America like a ‘piggybank,’” Trump wrote on Truth Social on Monday. “BUY AMERICAN. FLY ON AMERICAN AIRLINERS. ENJOY AMERICAN LIQUOR AND BEVERAGES. SAIL ON LAKE AMERICA. AMERICA FIRST!”

Earlier Monday, Trump posted an image showing Mexico, Canada, Central America, Greenland and Caribbean nations with the colors of the American flag. He also posted a caricature of him and Carney playing hockey in which Trump tells him: “Get up, Governor.”

Both sides stand to lose in a trade war poised to hurt businesses large and small across the world’s longest international border.

A prolonged economic conflict poses long-term risks for Canada, which faces price hikes and investment losses from the United States, by far its largest trading partner.

But Americans may also confront higher costs at a time when inflation is already a stubborn problem for the Trump administration. And the trade war may be felt most in northern border states set to hold midterm elections that could swing control of the U.S. Senate, becoming yet another political challenge for embattled Republican lawmakers.

In Maine, Republican Sen. Susan Collins, who is seeking reelection, has called Trump’s tariffs “a mistake.” In Michigan, Democratic Senate nominee Abdul El-Sayed released a video Tuesday highlighting everyday goods that have risen more than 30% over the last year, including Tide Pods, toilet paper and Tim Hortons coffee, as the trade conflict and war in Iran drive up costs.

American alcohol has also been the target of boycotts imposed by several Canadian provinces since March 2025 in response to earlier tariffs on Canadian goods by Trump.

The boycotts since then have erased roughly $360 million in revenue for the U.S. wine industry, according to a Wine Institute report, which represents California wineries. Canada makes up more than 35% of the export market for U.S. wine, more than the EU, U.K. and China markets combined.

For some California winemakers, the impact was even greater. One Sonoma winery referenced in the report said Canada made up about 85% of its international sales. Multiple wineries have had to lay off employees because of hits to their business.

“It’s had a tremendous negative impact,” said Julie Berge, vice president of communications at the Wine Institute.

Wine is not the only California business that has taken a hit — tourism has also seen a sharp decline in arrivals from Canada. In 2025, visitors from the country dropped by 20%.

Canada also targeted the agriculture, electronics and transportation equipment industries with its tariffs announced Tuesday, all of which have a presence in California.

Soon after the World Cup brought positive international attention and tourists to the United States, Trump escalated trade tensions with Canada.

“You went from this really high, exciting moment for the U.S. in terms of international attention, to the next week, it’s negative again,” Deborah Friedland, a hospitality consultant at financial services firm Eisner Advisory Group, told the Associated Press. “It’s one step forward and two steps back.”

Times staff writers Wilner and Ceballos reported from Washington and Duneja from Los Angeles.

Trade tensions soar as Canada matches US tariffs ‘dollar-for-dollar’, impacting 700 products and multiple industries.

Canada’s retaliatory tariffs on imports from the United States have taken effect, escalating the trade dispute between the two countries.

Tariffs ranging from 15 percent to 50 percent will apply to nearly $20bn worth of US imports from 12:01am ET (04:01 GMT) on Tuesday, matching US-imposed levies on Canadian goods including machinery, textiles and consumer products.

The new retaliatory tariffs apply to products including steel, household appliances, agricultural equipment and dairy.

“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Canadian Prime Minister Mark Carney told reporters in late August.

US President Donald Trump announced 50 percent tariffs against Canada in July, citing “discriminatory treatment” of US products. The announcement prompted the countries to enter trade talks in August, but a final deal failed to materialise before a deadline imposed by Trump.

“Canada wants the benefits of being a State, without being one!!!” Trump posted on Truth Social in response to Canada’s announcement in August.

The Canadian government said in a statement that the counter-tariffs will impact more than 700 products, adding that it would launch a $5.42bn support package for affected small and medium-sized businesses and workers.

On the eve of Ottawa imposing its tariffs, Trump threatened to block Canada-based aircraft manufacturer Bombardier from selling its planes in the US unless it began manufacturing them in the country.

The dispute has also extended beyond tariffs, with Trump signing an order last month renaming Lake Ontario “Lake America” for US federal use.

The retaliatory tariffs could place a financial burden on US automakers as Canada is the largest buyer of US-manufactured cars.

Americans could soon see increased prices on 550 consumer goods from Canada. According to a report from the Kiel Institute for the World Economy, US importers and consumers absorb 96 percent of the tariff burden.

The United States takes its turn chairing the G20 finance track this week under distinctly awkward conditions.

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US Treasury Secretary Scott Bessent and Federal Reserve Chair Kevin Warsh are hosting counterparts in the North Carolina mountains, following a deputies meeting held over the weekend, with the formal agenda covering economic growth, global imbalances, sovereign debt restructuring, banking regulation and energy security.

Asheville was chosen deliberately.

The city was devastated by Hurricane Helene in September 2024, a storm that killed more than 250 people and caused close to $80 billion (€69bn) in damage from Florida to the Carolinas, and Bessent has cited its rebuilding as a fitting backdrop for talks about economic growth.

“We want the rest of the world to come along with our growth agenda, whether it’s deregulation, the energy independence […]” he said, adding that “the world has this mountain of debt, and we do have to grow our way out of it,” confirming public debt will feature prominently in the discussions.

The setting may prove easier than the substance.

Trade friction between the US and Canada escalated after negotiations broke down, hostilities with Iran have resumed through economic rather than military means, and Warsh arrives days after a hawkish first Jackson Hole address that sharply raised the odds of a US rate rise this month.

Both meetings serve as groundwork for the leaders’ summit at Trump National Doral in Miami on 14 and 15 December, and come weeks before Xi Jinping is expected in Washington on 24 September.

Bessent’s push on Iran

The US Treasury Secretary intends to use bilateral meetings to build support for squeezing Tehran, and stated that Washington will sanction another bank this week, though he declined to name it.

“This is going to be financial violence if we have to,” Bessent told AP.

“We are showing people that we know who you are, you know who you are, and this has got to stop,” he added.

The campaign’s opening move came on Friday, when the US Treasury proposed a rule that would cut the Emirati branches of Banque Misr, Egypt’s second-largest lender, off from the American financial system.

By stopping short of full sanctions, the US administration appeared to signal reluctance to punish major trading partners that still deal with Iran, notably China and India.

On Beijing specifically, Bessent said “all options are on the table” over its continued oil purchases, while dismissing suggestions of hesitancy as “a completely false narrative that the media picked up on.”

The meetings are also being held under unusual media restrictions, after the US Treasury barred certain reporters from the New York Times, Wall Street Journal and Bloomberg from covering them.

The New York Times called the move “not just another disturbing effort by the administration to undermine independent journalism, but a blatant attempt to evade public scrutiny.”

The department has not explained its decision, though Bessent told the AP that “it has nothing to do with point of view.”

Who speaks for Europe at the G20

The EU is represented by Ireland’s Tánaiste and Finance Minister Simon Harris, who holds the role by virtue of Ireland’s EU presidency since 1 July, alongside ECB President Christine Lagarde and Economy Commissioner Valdis Dombrovskis.

Harris said he was looking forward to “the first Ministerial meeting of the G20 Finance Ministers and Central Bank Governors since Ireland assumed the Presidency of the EU,” describing the forum as a place where the largest economies “can exchange views and work towards international economic and financial stability.”

The Irish minister’s stated priority reflects the conflict shaping much of the agenda at this G20 meeting.

Among the EU’s concerns, Harris listed “energy security and ensuring we have secure and resilient energy supplies at a time of severe volatility caused by the conflict in the Middle East.”

He will also hold bilateral meetings with counterparts from G20 member states as Ireland has also been invited as a guest for the December leaders’ summit in Miami.

Additional sources • AP

WASHINGTON — In firing up a trade war with Canada, President Trump turned to a 96-year-old statute so obscure that many trade lawyers didn’t even know it was still on the books.

Trump invoked Section 338 of the Tariff Act of 1930 on Aug. 24 to slap a 50% tax on $20 billion worth of Canadian imports. The move prompted dollar-for-dollar retaliation from Ottawa and strained already-tense relations between the neighbors and longtime allies.

The president’s Section 338 tariff authority has never been used, let alone tested in court. “This law is literally a blank canvas because it’s never been litigated,’’ said Ryan Majerus, a partner at law firm King & Spalding and a former U.S. trade official.

So it’s unclear whether Trump’s latest Canada tariffs could survive a legal challenge, and some lawyers argue that the Depression-era law has been rendered obsolete by more recent trade laws.

Trump raises Section 338 from the dead

To sanction Canada allegedly for discriminating against U.S. dairy, auto and alcoholic beverage exports this summer, the Trump administration reached back to the Great Depression.

The 1930 tariff legislation is known as the Smoot-Hawley Tariff Act after its congressional sponsors. With the U.S. and world economies in collapse, Congress raised tariffs on hundreds of imports in an attempt to protect American farmers and manufacturers.

The tariffs are notorious among economists and historians for shutting down world commerce and making the Great Depression worse. (Trump, who proudly calls himself “Tariff Man,” has a different view, arguing that the Smoot-Hawley levies simply came too late to rescue the American economy.)

In addition to raising tariffs themselves, lawmakers in 1930 gave the president new power to impose them himself: Section 338 authorizes presidential tariffs of up to 50% on imports from countries that have discriminated against U.S. businesses.

Before Trump, no president had actually used the statute.

“Until Trump’s second term, few trade lawyers were aware that Section 338 remained on the books or understood what it did,” legal scholars Peter Harrell and Jennifer Hillman of Georgetown University wrote this month in the libertarian magazine Reason.

Harrell and Hillman cite State Department records to show that the U.S. considered using Section 338 in trade disputes — against Spain in 1932 and against newly communist China in 1949 — but never did. After the Depression, U.S. policy focused more on using negotiations — rather than sanctions — to open foreign markets.

So Section 338 sat moldering in the law books.

Other laws take hold

As the years went by, the United States passed new trade laws. Some of them ceded to the president tariff power, which the Constitution originally granted to Congress. But the new laws also limited the president’s authority to certain circumstances — including dealing with national security threats and foreign currency crises — and required the government to carry out investigations and meet other procedural requirements beforehand.

“There is a very strong argument that [Section 338] was superseded,” said Sara Albrecht, chief executive of the Liberty Justice Center, a libertarian advocacy group that represented businesses that successfully challenged the earlier Trump tariffs with the Supreme Court.

If Congress wanted the president to retain Section 338 power, Albrecht asks, why did lawmakers pass the Trade Expansion Act of 1962, which allowed for national security tariffs? And the Trade Act of 1974, which gives the president power to go after other countries’ unfair trade practices?

Battling over Canada’s dairy market

Legal experts see other weaknesses in the Section 338 tariffs.

Harrell and Hillman, for instance, write in Reason that Section 338 authorizes only tariffs that “offset” the harm that a foreign country’s trade practices do to American companies. But in targeting Canada, they note, the Trump administration made no attempt to calculate the dollar amount of damage arising from discrimination against U.S. farmers, automakers and marketers of alcoholic beverages. And the U.S. went after Canadian imports unconnected to those trouble spots, including hockey sticks and cement.

Harrell and Hillman also say that Canada’s protection of its dairy market does not single out U.S. farmers for discrimination; the rules apply to many other Canadian trading partners as well.

Moreover, the United States agreed to the Canadian system — in which Canada imposes stiff tariffs on dairy imports that exceed a quota — in a North America trade pact Trump himself negotiated with Canada and Mexico in his first term. Harrell and Hillman write that it is “incongruous, to say the least, for the United States to denounce as discriminatory the very terms it agreed to.”

But John Veroneau, former general counsel for the U.S. Trade Representative, said the Section 338 tariffs are straightforward: They are justified when another country discriminates against U.S. imports by taxing them more than it taxes imports from other countries.

And in a “perverse irony,” Veroneau said, Canada did just that when it responded to tariffs Trump imposed on Canadian products last year with its own retaliatory tariffs on U.S. imports. “Courts will rightly feel obliged in the face of any challenge [to decide]: Are the statutory requirements met or are they not met, however ludicrous the broader context might be,” said Veroneau, adjunct professor at the University of Maine School of Law.

Plaintiffs are so far hard to find

Trump’s other tools to impose his protectionist agenda already have floundered in court. The Supreme Court in February threw out his boldest gambit: invoking a 1977 national security law to hit almost every country on Earth last year with double-digit tariffs.

When Trump tried to replace the revenue lost to the Supreme Court defeat with a new set of tariffs, a specialized trade court in New York rejected those too — though the government was allowed to continue collecting the import taxes while the case works its way through the court system.

No one has filed a lawsuit challenging the Section 338 tariffs. The Liberty Justice Center has been looking for businesses willing to sue the government over the levies.

“I haven’t had a lot of response from plaintiffs,” Albrecht said. “Anytime you want to sue the government, it’s a hard proposition.” The Section 338 tariffs on Canada are also far smaller — just 5% of Canadian imports — than Trump’s 2025 worldwide tariffs, meaning that fewer companies have to pay them and can claim to have been injured by them.

There’s also a chance, Albrecht said, that the two countries will resume the talks they broke off Aug. 21 and reach a compromise to end a standoff neither country wants. “I’m hopeful that somebody blinks, that they come to some agreement and it all goes away,” she said.

Canada’s economy has rebounded sharply in the second quarter after six months of virtually no growth, aided by a strong jump in exports and solid domestic demand, though a new round of tariffs from the United States brings renewed uncertainty.

The economy grew at an annualised rate of 3.3 percent in the second quarter, the fastest rate since 2023, after a revised 0.3 percent increase in the first quarter, Statistics Canada said on Friday.

The upward revision to first-quarter growth means Canada was not in a technical recession, usually defined as two straight quarters of contraction.

Healthy domestic demand, led by consumer spending and business investment, signals the economy is slowly brushing off the impacts of more than 18 months of US import tariffs that upended North American supply chains and increased costs.

Renewed tariff dispute

A strong domestic consumption and expenditure pattern puts Canada on a firm footing to withstand a new 50 percent US import tariff that President Donald Trump imposed this week on $20bn of Canadian exports. Canada retaliated with its own countermeasures on US imports.

“It seems like households and businesses were beginning to find ways of navigating the trade-related uncertainty before the latest round of tariffs,” Royce Mendes, managing director and head of macro strategy at Desjardins, wrote in a note.

“While it helps that the economy was on stronger footing heading into August, the fresh wave of protectionism injects a significant amount of uncertainty into the outlook,” Mendes said.

Michael Davenport, senior Canada economist at Oxford Economics, said in a note to Al Jazeera that while the gross domestic product (GDP) growth was along expected lines, “the economy is set to slow in the coming quarters amid escalating US-Canada trade policy uncertainty, new bilateral tariffs, and a shrinking population”.

The Canadian dollar weakened slightly after the GDP data, with the loonie trading down 0.01 percent at 72.17 US cents.

On a quarterly basis, GDP grew 0.8 percent for the period ended June, from an upwardly revised 0.1 percent in the previous quarter.

Second-quarter annualised growth was higher than the Bank of Canada’s July forecast of 2.5 percent growth.

Higher exports were one of the main contributing factors for the second-quarter growth, with outbound shipments growing 3.6 percent, the biggest increase in over three years, Statistics Canada (StatsCan) said.

Stronger household spending

Final domestic demand, the sum of all consumption and capital spending and a crucial metric to assess domestic health, rebounded to 1 percent in the second quarter, from a minor contraction in the first quarter.

Domestic demand has been muted for several quarters as consumers and businesses remain cautious while Canada navigates its trade war with the US.

But household final consumption expenditure, the main indicator of consumer spending, rose 0.8 percent, its highest level in three quarters, highlighting stronger household spending. This was mainly driven by higher wages and government benefits, economists said.

Business investment, or business gross fixed capital formation, sprang to a solid 2.3 percent growth in the second quarter from a contraction of 1.3 percent, the first time in the last year and a half that business investment has expanded.

That growth was led by investment in both residential and non-residential structures, machinery and equipment, StatsCan said.

However, the general gross fixed capital formation, essentially government expenditure for creating assets, continued to decline with a second-quarter contraction of 2.9 percent, after shrinking 2.6 percent in the previous quarter.

On a month-to-month basis, GDP for June grew 0.3 percent against a forecast of 0.2 percent, and an advance indicator showed that the economy was largely flat in July, the statistics agency said.

TORONTO — Canada struck back at the United States on Tuesday with retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbors escalated sharply.

The tension threatened one of the world’s largest trading relationships. The new tariffs extended well beyond industrial goods, hitting everyday purchases such as seafood, cheese, clothing, cosmetics and toilet paper, with some facing duties as high as 50%.

“We did not choose this conflict, but when our economic integration is used as a weapon rather than the foundation for a win-win partnership, we need to stand up,” Finance Minister François-Philippe Champagne said in French, calling the situation “an unprecedented challenge imposed on Canada.”

Canada’s retaliation came after the Trump administration imposed 50% tariffs over the weekend on Canadian goods following the collapse of trade negotiations. Canadian Prime Minister Mark Carney accused Washington of trying to subordinate Canada and said U.S. demands during the failed talks showed that Americans wanted to “destroy our major industries.”

President Trump intensified the confrontation Monday, telling Canadian leaders to “fall in line” or face consequences “far WORSE” than existing tariffs and threatening new 50% tariffs on Canadian vehicles, auto parts and steel.

Trump added another provocation Tuesday, saying the United States was giving “serious consideration” to renaming Lake Ontario “Lake America” in a feud with Ontario Premier Doug Ford. Such a change would be reminiscent of the Republican president’s unilateral action last year by executive order to rename the Gulf of Mexico to the Gulf of America.

The tariffs will take effect Sept. 8 at rates of 15%, 25% and 50%, with Canada matching the corresponding U.S. tariff rate on more than 700 products such as pulp and paper and electronics. The tariffs on many American products would double from 25% to 50%, with the largest share of the new measures affecting steel and aluminum.

Canadian officials said the goal is not to raise revenue but to protect Canadian companies and reduce U.S. imports.

U.S. steel imports, for example, have already fallen 30% since Canada imposed a 25% tariff, and the new 50% rate is expected to cut them further, Canadian officials said.

Goods facing 50% tariffs include some steel and aluminum products, furniture and clothing. Appliances, dairy products including cheese, fish and seafood, and certain steel and aluminum derivatives will face 25% tariffs. Existing Canadian countertariffs on U.S. autos will remain in place.

Canada also announced a support package for workers and businesses affected by the dispute worth $7.5 billion in Canadian dollars ($5.4 billion in U.S. dollars).

Canadian officials acknowledged the counter tariffs will raise costs for some businesses and consumers but said they expect the overall economic effects to be moderate.

They said the government has provided more than $30 billion Canadian dollars (US$21.7 billion) in tariff-related support since the beginning of 2025 — far more than it has collected in retaliatory duties — as it tries to cushion the blow from the trade fight.

Canada and the United States have deeply integrated supply chains across autos, energy, agriculture and manufacturing, making a prolonged trade fight potentially costly for businesses and workers on both sides of the border.

Businesses and consumers are caught in the middle, facing uncertainty about how much prices may increase.

Michael Howard II, owner of a furniture business in Warren, Michigan, outside Detroit, said the tariffs will hamper the “ability for us to put food on the table for our family” and affect “the ability for us to give back to our community.”

Howard and his wife started their business a decade ago. They make and sell everything from dining room tables to bookcases.

“To say that we don’t need Canada is just disingenuous,” he said. “It’s dishonest. And it’s just absolutely not truthful. We need our neighbor, but also they need us.”

Carney said Monday that Canada may need to move away from matching U.S. tariffs dollar for dollar and instead use more targeted retaliation aimed at protecting Canadian workers and businesses.

“An attitude at the negotiation table that Canada is a subsidiary of the United States” is “not something we’re going to accept,” Carney said.

Carney was even more blunt in French.

“We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminum,” Carney said. “That was one of the main reasons we said no. It was a bad deal.”

On Monday, Carney said U.S. negotiators had raised the discoverability of French-language content on streaming platforms, along with French-language labeling rules, as trade irritants. He rejected the idea that those protections were negotiable, saying in French: “For the Americans, questions about the French language, Quebec culture, francophone culture and Canadian culture are irritants. Here in Quebec, here in Canada, they are rights.”

In a social media post early Tuesday, Trump wrote: “I would never interfere with Canadians speaking French! In fact, I have never even thought of doing such a stupid thing. This lie was made up by a weak and ineffective Prime Minister in an attempt to gain political support, which he has totally lost, from the people of Quebec. I love French Canadians!”

Gillies writes for the Associated Press. AP writers Seung Min Kim in Washington and Mike Householder in Warren, Mich., contributed to this report.

Canada will unveil retaliatory tariffs against the U.S. on Tuesday as tensions escalated with President Donald Trump pressing the Canadian government to “fall in line,” while Prime Minister Mark Carney accused Washington of offering a bad deal.

Canadian officials, including Finance

Canada’s Prime Minister Mark Carney has announced retaliatory tariffs on the United States after Washington imposed a 50 percent levy on $20bn worth of Canadian goods.

Carney, speaking in Ottawa on Saturday, said the new Canadian tariffs would target US steel, dairy and electronics industries among others and take effect on September 8.

“Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses,” Carney told reporters.

The announcement came after days of intense negotiations broke down late on Friday, worsening a delicate relationship between the longtime trade partners and allies.

US President Donald Trump’s new tariffs hit sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, and cover some $20bn worth of goods, or 5.5 percent of Canadian exports to the US.

Carney said Trump set conditions that were ultimately unacceptable even though earlier talks had been positive.

“In recent days, the United States proposed new terms that were uneconomic, unfair and undermined the net benefits for Canada, and called into question the reliability of any deal,” Carney said, adding these demands included curtailing Canada’s ability to forge new trade deals.

“We cannot accept what they’ve offered, and we will not give what they’ve asked.”

He added that US negotiators also made unacceptable “threats” to the French language and “Quebec culture”, referring to the French-speaking province in eastern Canada.

No new talks planned

Carney is one of the few global leaders to retaliate against US tariffs and has pledged to forge new trade and military alliances, despite Canada’s dependence on the ‌US for nearly 70 percent of its exports.

Canada will impose tariffs on US steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, along with some products the US previously targeted in Canada, Carney said from Ottawa’s Parliament building. The government will release details on its response in the coming days, he said.

Carney said Canada would announce support measures next week for industries hit ⁠by the new US duties, adding these measures could last years.

There was no immediate comment from the White House.

US Trade Representative Jamieson Greer told Fox News on Saturday that no new ⁠talks are planned with Canada.

“We’re moving forward with measures that respond to Canadian retaliation,” Greer said. “They’ve always had the best deal, and they still would have an even better deal, but they didn’t want that.”

The new US tariffs are expected to have a major impact on Canada’s economy.

“Costs are going to go up, prices are going to go up, unemployment is going to go up as well,” said Al Jazeera’s David Mercer, reporting from the Canadian city of Calgary. “And it’s been warned that business owners – small [and] medium-sized businesses – some of those will have to declare bankruptcy,” he said.

At the same time, Mercer said, Carney is selling the trade war as an opportunity for Canada to strengthen its trade relations with other countries.

“He’s been around the world, he’s been talking to countries in Asia, in Europe, shoring up new trade relationships, wanting to diversify Canada’s economy and Canada’s trade relationships with other countries around the world just to get away from that dependency that Canada has traditionally had on the United States,” he said.

Public opinion surveys in Canada show most Canadians back a “tougher approach” to the US in the trade talks. A poll by Leger last week said 56 percent of Canadians favoured a hard line and making no more concessions.

‘Bad deal’

Ontario Premier Doug Ford, one of the most vocal ⁠opponents of US tariffs, supported Carney’s decision to retaliate.

“I’m glad he didn’t sign that deal because it was a bad deal. It was a bad deal for Ontario. It was a bad deal for the auto sector, the steel sector, and manufacturing sector,” Ford told reporters on Saturday.

In Port Colborne, Ontario, resident Stuart Edwards said the trade war was going to “hurt everybody” and “it’s just sad”.

“We have a bully in Washington, and he’s just hitting us all with the big stick all the time,” he said. “And we’re not going to put up with it; Canada isn’t. We’ll fight back.”

But Pamela Coulis, from Fort Erie in Canada, was worried about rising prices.

“I think probably the gas will go up even more, and all products, from food to, I don’t know, wood, everything else,” she said.

Diamond Isinger, who served as a special adviser to former Canadian Prime Minister Justin Trudeau, said both countries will suffer from the trade war.

“It’s going to cause pain and challenge for Canadians and Americans alike, in terms of the actions that, unfortunately, the US has taken as well as Canada’s retaliation. But ultimately this was the way forward; this was the only realistic next step,” she said.

“Because the US administration responds best, of all the responses that they could have, to all the actions that a government like Canada could take, to strength,” Isinger added.

“So, we could not simply accept 50 percent tariffs going forward. We had to move forward with our own retaliatory package.”

In the US, the escalating trade war was met with anger by Democratic lawmakers and governors from border states including Minnesota, New York and Washington, who blamed Trump for triggering chaos that would raise costs for US businesses and families.

“Needlessly picking fights with our allies and raising prices here at home. That’s Trump’s economic policy in a nutshell,” New York Governor Kathy Hochul posted on X.

The Business Roundtable, a group of 200 chief executives of leading US corporations, also warned the new tariffs “risk raising costs for American businesses and families”, and urged both governments to resume negotiations.

Aug. 22 (UPI) — A 50% tariff on Canadian goods went into effect early Saturday after talks between the two countries collapsed.

Canadian Prime Minister Mark Carney walked away from the negotiations and said Canada would retaliate against the tariffs.

Negotiators had been in Washington, D.C., working with U.S. Trade Representative Jamieson Greer to try to come to an agreement. But just before the midnight deadline Friday, Carney released a statement on X announcing that there would be no deal.

“In recent weeks, we made important progress toward improving Canada’s position as having the best deal in the world with the U.S. However, that progress has not been enough to meet our objectives for Canadians. As a result this evening I have decided to suspend trade negotiations with the U.S. and have directed Canada’s negotiators to return to Ottawa,” Carney said in the statement.

“At midnight tonight, the U.S. intends to impose a 50% tariff on roughly $28 billion of Canadian goods. Canada will match those tariffs dollar for dollar to protect our workers and businesses,” Carney added.

Greer posted a statement on X saying, “Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk-backs of other commitments by Canada have upended the careful balance reached in the past days.”

“This is a missed opportunity for Canada to partner with the United States, which is the fastest growing economy in the G7,” Greer said.

President Donald Trump signed orders in July to add the new tariffs on goods, including cement, hockey sticks, beer, cheese and other items that would make up about 2% of the entire trade between the two countries.

They were set to take effect at 12:01 a.m. Wednesday, but Trump extended the deadline to Friday night. He announced on Truth Social about 90 minutes before the deadline, saying the two countries “have a DEAL!”

Carney responded on X: “Substantial progress has been made, although there is important work still to be done.”

Analysts have said this is bad news for the United States and Canada.

“Economically, [the new tariffs are] not that important – except that the relationship itself is extremely important,” said Mary Lovely, a senior fellow at the Peterson Institute for International Economics, a nonpartisan research organization, The Washington Post reported.

Candace Laing, CEO of the Canadian Chamber of Commerce, said it will hurt both countries economically.

“This will be a body blow to North American competitiveness in this self-defeating trade saga,” Laing said in a statement. “Americans will see their costs go up, and Canadians will see customers, investment and small businesses disappear.”

A fresh wave of US tariffs on a wide array of Canadian goods has come into effect as of midnight on Saturday after a last minute break down in trade talks.

Announcing the suspension of negotiations shortly before the Friday night deadline, Canadian Prime Minister Mark Carney said he would impose reciprocal tariffs on US goods “dollar for dollar”.

Carney said “last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal”.

Trade negotiators had been engaged in intense talks since July, after President Donald Trump threatened to impose a 50% levy on nearly $20bn (C$28bn) of Canadian imports by 19 August.

Trump had temporarily paused those tariffs earlier in the week, saying the two sides were close to signing a trade deal that was “very good” for both countries.

But minutes before a deadline for a deal, Carney said that while “important progress” had been made in the talks it was “not enough to meet our objectives for Canadians”.

“As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed negotiators to return to Ottawa,” he said.

“Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”

After Carney’s announcement US trade representative Jamieson Greer said in a statement: “Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.

“Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,” the statement on X said.

The breakdown in talks marks a significant shift in tone from earlier in the week, when both US and Canadian officials sounded optimistic that a trade deal beneficial for both countries was within reach.

Negotiators were reportedly discussing a deal that would reduce US tariffs on Canadian steel and aluminium from 50% to 25%, and on Canadian autos from 25% to 15%.

In exchange, Carney had asked Canadian provinces to restore US alcohol to store shelves.

Tensions between the two major trading partners have been simmering since Trump returned to office in January last year and unleashed a wide-ranging global programme of tariffs, upending decades of free trade between Canada and the US.

Now that talks have broken down, Canada will be hit with new 50% US tariffs imposed by Trump using a Depression-era law called the Tariff Act of 1930.

They will be applied on a range of goods, including wine, dairy, cement, clothing and hockey equipment.

They are in addition to existing tariffs the US had already imposed on Canadian steel and aluminium, autos and lumber.

Doug Ford, the traditionally outspoken premier of Canada’s largest province Ontario, said “the prime minister has my full support for a strong response—tariff for tariff, dollar for dollar,” following Carney’s announcement.

Canada has been engaged in on-again, off-again trade negotiations with the US for over a year in pursuit of a deal that would see the US drop or reduce tariffs on these key sectors.

The US, meanwhile, has been asking for a number of concessions from Canada, including removing its remaining retaliatory tariffs on American autos and adjusting its dairy quotas to allow greater access for US cheese producers.

It has also asked for the ban on US alcohol sales, imposed last year by most Canadian provinces in retaliation to Trump’s tariffs, be removed.

Businesses and stakeholders on both sides of the border had pushed for a deal to be reached, arguing that the new US tariffs on Canada will be harmful to both countries.

The US Chamber of Commerce said earlier in the week in a statement that “higher tariffs would damage both economies, drive up costs for US families, further disrupt critical supply chains, and risk the 13 million American jobs that depend on trade under the US-Mexico-Canada Trade Agreement”.

A recent poll by Canadian firm Abacus Data suggested that around 36% of Canadian would support retaliating to US tariffs, while another 30% would want the Carney government to continue negotiating.

Retaliation risks upsetting the Trump administration, with trade representative Jamieson Greer saying the US is “not going to tolerate” counter-tariffs.

“We’ll take action,” he told reporters last week.

Aug. 21 (UPI) — Brazilian President Luiz Inácio Lula da Silva said he spoke by phone with President Donald Trump on Friday to push for resuming bilateral trade negotiations and discuss efforts to contain international conflicts.

According to Brazil’s presidential office, the 80-minute conversation resulted in an agreement for representatives of both governments to resume talks aimed at resolving the trade dispute, Agência Brasil reported.

During what the Brazilian government described as a “friendly and cordial” conversation, Lula rejected the U.S. justifications for imposing new tariffs, calling them “unfounded.”

The recent trade barriers imposed by the Office of the U.S. Trade Representative include an additional 25% tariff over alleged unfair practices and another 12.5% tariff linked to alleged shortcomings in efforts to combat forced labor.

The White House based the measures on a series of regulatory and political concerns involving issues including Brazil’s Pix instant payment system, anti-corruption efforts, the ethanol market and efforts to curb deforestation.

Lula argued that the trade restrictions lack a factual basis and cause direct economic harm to both countries.

The Brazilian president said diplomacy is the appropriate path forward and called for bilateral dialogue to remain open.

According to the statement, Trump was receptive to the need to preserve strategic trade ties and proposed that technical delegations from both governments resume meetings as soon as possible.

On security, Lula reiterated Brazil’s interest in cooperating with the United States in the fight against organized crime. He said criminal groups terrorize the country’s poorest communities on a daily basis but should not be confused with terrorist organizations.

Lula outlined progress in his government’s strategy to financially weaken criminal groups, citing seizures worth millions, and detailed the creation of maximum-security prisons.

Trump expressed willingness to deepen cooperation on border security and high-level intelligence sharing, according to the Brazilian government.

The two presidents concluded the call by discussing the need to pursue negotiated peace efforts to address the conflicts in Ukraine and the Middle East.

Aug. 21 (UPI) — President Donald Trump‘s threatened 50% tariffs on $20 billion worth of Canadian goods hung in the balance Friday as U.S. and Canadian negotiators met in Washington with a midnight deadline looming.

Canadian Minister for Internal Trade Dominic LeBlanc, his country’s lead negotiator, arrived at the offices of U.S. Trade Representative Jamieson Greer shortly after noon as the two sides met to strike a deal ahead of Trump’s 12:01 a.m. Saturday deadline, the CBC reported.

The U.S. president signed orders in July to impose 50% tariffs on Canadian goods, including cement, hockey sticks and many other items, representing about 2% of the entire trade between the United States and Canada.

The tariffs were to go into effect at 12:01 a.m. Wednesday, but were delayed through the end of Friday by an announcement on social media issued about 90 minutes before the deadline in which Trump said the two sides “have a DEAL!” with final implementation to come.

Canadian Prime Minister Mark Carney, however, was much more cautious, saying only that “substantial progress has been made, although there is important work still to be done.”

Details of the touted agreement have been scarce. However, Trump teased the possibility that it could reinstate work on the abandoned proposed Keystone XL oil pipeline from Alberta, which was dropped by then-President Joe Biden in 2021 over climate concerns.

The U.S. president also intimated that U.S. tariffs on Canadian autos could be part of the deal, which Greer suggested that the United States could adjust its current tariffs on Canadian steel and aluminum.

Canadian negotiators, meanwhile, want to ease the tariffs already imposed on Canadian industries, including duties of up to 50% on steel, aluminum and autos. Some tariffs also affect Canadian softwood lumber.

On Wednesday, after Trump extended the deadline, Carney urged a “Team Canada” approach during a virtual meeting with provincial and territorial premiers as some of them have toed a hard line in refusing to stock American alcohol products, which is seen as a main irritant to the Trump administration.

Manitoba Premier Wab Kinew on Thursday told reporters if a new deal allows a return of U.S. beer and spirits to Canadian shelves, local consumers should “leave it there.

“Don’t buy it. Let it sit on the shelf … and buy the Canadian stuff instead,” he said.

Carney on Wednesday emphasized “continued collaboration with provincial and territorial governments as the federal government works to finalize a deal with the United States,” according to an official readout of the meeting.

He reiterated the government’s goal is to “secure the best deal for Canadians — one that provides the greatest possible U.S. market access for Canadian businesses,” and emphasized “the importance of remaining focused on Canada’s central economic strategy: building our economic strength at home and diversifying our partners abroad.”