World Affairs
U.S. tells Canada to end retaliation as 50% tariff deadline approaches
Ottawa says its measures matched earlier U.S. actions and that it remains ready for intensive negotiations under the North American trade framework.
Executive summary
- The deadline: New U.S. tariffs of 50% on nearly $20 billion of Canadian vehicle, alcohol and dairy imports are scheduled to take effect August 19.Office of the U.S. Trade RepresentativeBloomberg
- The U.S. position: Trade Representative Jamieson Greer says Canada must unwind retaliatory and discriminatory measures to avoid the duties.BloombergOffice of the U.S. Trade Representative
- Canada's position: Prime Minister Mark Carney says Canada merely matched earlier U.S. measures and regards the new tariffs as inconsistent with CUSMA.Prime Minister of Canada
- What is open: Both governments say discussions can continue, but neither side had announced a settlement before the deadline weekend.BloombergOffice of the U.S. Trade RepresentativePrime Minister of Canada
The United States is pressing Canada to remove retaliatory trade measures before new 50% duties take effect on August 19. U.S. Trade Representative Jamieson Greer said Washington would not tolerate retaliation and tied relief from the planned tariffs to changes by Ottawa.BloombergOffice of the U.S. Trade Representative
The U.S. action covers nearly $20 billion in Canadian imports across motor vehicles, alcoholic beverages and dairy. The administration invoked Section 338 of the Tariff Act of 1930, a rarely used authority that permits duties of up to 50% in response to discriminatory treatment of U.S. commerce.Office of the U.S. Trade RepresentativeWhite House proclamation
Greer has cited provincial removal of U.S. alcohol from shelves, Canadian treatment of dairy access and limits affecting vehicle exports. The U.S. position describes those policies as retaliation and discrimination; that characterization is disputed by Canada.Office of the U.S. Trade RepresentativeBloomberg
Prime Minister Mark Carney said the United States initiated a series of unilateral measures that violated the Canada-United States-Mexico Agreement and that Canada had matched them as permitted. Ottawa says it has offered proposals to resolve the dispute and modernize the North American trade pact.Prime Minister of Canada
The disagreement now turns on whether negotiations can produce a change before the duties begin. An announced deadline is not the same as tariffs already collected, and any exemption, delay or settlement must be confirmed through a formal U.S. or Canadian action rather than political remarks alone.BloombergOffice of the U.S. Trade RepresentativePrime Minister of Canada