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.[1][2]
- The U.S. position: Trade Representative Jamieson Greer says Canada must unwind retaliatory and discriminatory measures to avoid the duties.[2][1]
- Canada's position: Prime Minister Mark Carney says Canada merely matched earlier U.S. measures and regards the new tariffs as inconsistent with CUSMA.[3]
- What is open: Both governments say discussions can continue, but neither side had announced a settlement before the deadline weekend.[2][1][3]
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.[2][1]
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.[1][4]
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.[1][2]
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.[3]
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.[2][1][3]