Talks collapsed August 21 after the US limited the tariff cut to passenger cars and light pickups, excluding heavier trucks.
The US imposed 50% tariffs on roughly $20 billion of Canadian exports, including vehicles.
Canada will retaliate dollar-for-dollar starting September 8, targeting US steel, dairy, farm equipment and pulp and paper.
Trucks broke the deal as much as the tariffs did. Canada and the US had lined up a plan to cut auto duties to 15% from 25%, but the White House wanted that break reserved for light vehicles only, leaving medium and heavy trucks stuck at the higher rate and under fresh 50% duties on a wide range of Canadian goods, as first detailed by outlets including Automotive News.
Prime Minister Mark Carney announced the collapse of trade talks on August 21, stating that Washington "asked too much and offered too little." This breakdown clears the way for a 50% tariff wave on Canadian exports, including automobiles, which Carney later estimated would impact closer to $28 billion in goods, up from an initial $20 billion. In response, Canada has vowed to implement dollar-for-dollar retaliation starting September 8.
