Carney said new tariffs on US steel, electronics and other products would come into effect from September 8, following the failure of trade negotiations between the two countries.
The Canadian prime minister said the government would protect the interests of Canadian workers, farmers, families and businesses, adding that Canada would respond to the US trade measures dollar for dollar.
“We are in a state of war with the United States” over trade, Carney said, stressing that Canada would not back down from defending its economic interests.
The announcement came after US President Donald Trump declared a 50 per cent tariff on imports from Canada, escalating an already tense trade dispute between the two neighbouring countries.
The latest US tariffs are expected to affect Canadian exports to the US worth around $20 billion, raising concerns over further disruption to bilateral trade and putting additional pressure on negotiations between Ottawa and Washington.
The reciprocal measures mark a further escalation in the trade confrontation as both countries prepare to impose additional duties on each other’s goods.