'We got attacked': Carney says retaliatory tariffs on U.S. to take effect next month

OTTAWA — Prime Minister Mark Carney says retaliatory tariffs will hit the U.S. starting next month after Canada walked away from what he called a "bad deal."

The U.S. introduced new 50 per cent tariffs on billions of dollars in Canadian exports on Saturday after trade talks failed.

"We got attacked," Carney told reporters on Parliament Hill Saturday when asked about the escalating trade war.

Carney suspended talks with the United States late Friday and summoned his negotiators back to Ottawa.

"We cannot accept what they've offered, and we will not give what they've asked," he said.

The prime minister was joined by Canada-U.S. Trade Minister Dominic LeBlanc and Canada's chief trade negotiator Janice Charette.

Carney said Canada will match Washington's new tariffs dollar-for-dollar and that the levies will be targeted at sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper and electronics. He said more details on those retaliatory measures, as well as supports for affected sectors, will be announced in coming days.

The counter tariffs are set to come into force on Sept. 8, the day after Labour Day.

"We take this step reluctantly," Carney said, adding that some of the measures will raise costs and reduce choice for Canadians.

The prime minister also said he recognized that some U.S. companies and states are "innocent bystanders" in the dispute, which he said is preventing Canada and America from "doing so much good that we could do together."

"But at the same time, we take this step confident that it is in the best interest of Canada and that by rejecting a bad deal, by standing up for Canada, by focusing on what we can control, we will build Canada strong for all," he said.

Carney met virtually with his cabinet Saturday, followed by a meeting with premiers, where he said the provinces need to keep working together.

Carney said that the U.S., "at the last hours," introduced efforts to restrict Canada's ability to have other trade deals. He called the move a "power play," that became an issue of sovereignty.

"We believe in free trade, with a partner of choice in many respects with countries around the world, and the Americans wanted to restrict that," he said. "Unacceptable."

Asked by a reporter if the U.S. was asking Canada to impose tariffs on other countries in conjunction with them, Carney said "there were elements of that in certain sectors."

"There were elements where we would see the merit of that as part of a comprehensive deal that made sense for Canada," he added.