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Canada Vows Dollar-for-Dollar Response as US Tariffs Deepen Trade Dispute
Canadian Prime Minister Mark Carney has accused the United States of imposing new tariffs designed to damage Canada and divide the two countries after trade negotiations collapsed.
“We cannot accept what they’ve offered, and we will not give what they’ve asked,” Carney said in a speech on Saturday, explaining Ottawa’s decision to reject a proposed agreement.
New US tariffs of 50 percent on about $20 billion worth of Canadian goods took effect on Saturday after negotiators failed to reach a deal. Both governments accused the other of making last-minute changes that undermined the negotiations.
Carney said the final US proposals were “unfair” and “uneconomic” and raised doubts about whether Washington could be relied upon to honour an agreement.
Canada has responded by promising to match the new US tariffs “dollar for dollar” in an effort to protect domestic companies and workers.
“Our response will be concentrated in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics,” Carney said.
The latest measures add to existing US tariffs on major Canadian exports, including steel, aluminium, automobiles and lumber. Canadian officials have warned that the broader tariff regime is placing additional pressure on businesses and the country’s economy.
The Office of the United States Trade Representative described the collapse of the negotiations as a “missed opportunity” for Canada. It accused Ottawa of maintaining what it called prolonged retaliation against American products.
According to the US trade representative, Washington had offered Canada favourable treatment compared with other major exporters, but said new Canadian demands and changes to previous commitments disrupted the balance reached during negotiations.
The dispute escalated despite earlier optimism from US President Donald Trump, who had postponed the introduction of the latest tariffs after suggesting that a trade agreement was close.
Trump has repeatedly criticised Canada’s trade policies and has also suggested that the country should become the 51st US state. In a post early Sunday, he argued that Canada wanted the benefits of being part of the United States without actually becoming a state.
Trump’s administration has pursued an aggressive tariff policy since returning to office in January 2025, arguing that higher import duties will support American manufacturing and create domestic jobs.
The policy has drawn criticism from businesses and economists, who warn that tariffs can increase costs for consumers, disrupt supply chains and make companies more cautious about investment.
The latest confrontation leaves the two neighbours facing a prolonged period of uncertainty, with businesses on both sides preparing for higher trade costs and possible further retaliatory measures.
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Iran Says Hormuz Can Reopen Within Seven Days as Oil Exports Come Under Pressure
Iran’s military said it retained full control of the Strait of Hormuz on Monday, while Foreign Minister Abbas Araghchi said the strategic waterway could be fully reopened within seven days if Tehran’s conditions were met and hostile measures against the country were lifted.
The statements came as Iran faced growing economic pressure, with the rial falling to record lows, Oil Minister Mohsen Paknejad resigning and the United States claiming that Tehran had not loaded any crude onto tankers during September.
Brigadier General Aziz Jafari, commander of Iran’s Khatam al-Anbiya Joint Air Defence Headquarters, said all movements through the Strait remained under the control of the Iranian armed forces despite changes in US tactics.
“All movements (in Hormuz) are under the control of the armed forces of the Islamic Republic,” Jafari said.
US Treasury Secretary Scott Bessent said on Thursday that Iran had not loaded crude oil onto tankers during September, arguing that the Trump administration was targeting Tehran’s main source of revenue.
Iranian President Masoud Pezeshkian acknowledged in August that restrictions were disrupting oil exports, saying the country had previously been able to sell oil but was now unable to do so at the same level.
Paknejad’s resignation was officially attributed to family and personal matters. However, his departure came amid speculation about the impact of reduced oil exports on government finances. Before his resignation was announced, Paknejad said in a video carried by Iranian media that revenue from oil already sold would be collected and that the process would continue.
The acting oil minister has pledged to maximise production and maintain exports through new strategies.
Despite pressure on Iranian exports, oil shipments from other parts of the region remained high. Ship-tracking company Kpler estimated crude exports from the region excluding Iran at between 19.5 million and 22.5 million barrels per day during the final week of September, compared with a pre-war regional average of about 18 million barrels per day.
Iran’s currency has also come under severe pressure. The euro rose above 300,000 tomans on the informal market, while the US dollar reached 270,000 tomans, more than double its level of about 135,000 tomans at the beginning of the year. One toman is equal to 10 rials.
The UK Maritime Trade Operations agency reported at least one attack each day in the Strait of Hormuz or the Gulf of Aden since October 2.
Araghchi told foreign ambassadors in Tehran that the conflict could not be resolved militarily and called for negotiations based on fairness. He warned that any renewed military confrontation would trigger a stronger Iranian response.
Parliament Speaker Mohammad Bagher Ghalibaf said Tehran had received US proposals through intermediaries but rejected what he described as one-sided demands.
He said the Strait would remain closed until Iran’s seven conditions, based on the Islamabad memorandum, were met.
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