Canada Prime Minister Mark Carney has said Ottawa will deliver a “fitting response” to the United States after Washington imposed steep tariffs on Canadian goods. He described the move as an attack and said the two countries are now in a trade war.

According to Carney, last-minute changes introduced by the Trump administration led Canada to cancel the expected trade agreement talks. Following that, the US imposed a 50% tariff on Canadian exports valued at about Rs 1.90 lakh crore.

Carney said Canada will impose “dollar-for-dollar” counter-tariffs on US products starting September 8. He added that if the US significantly reduces its tariffs, Canada is prepared to remove duties on American aluminium, steel and motor vehicles.

He also said Canada is ready to encourage provinces to resume sales of US alcohol. However, Carney maintained that the final conditions put forward by the Trump administration were unacceptable, and that Canada would not compromise its sovereignty or allow key industries to be undermined.

Carney said the trade conflict signals a fundamental shift in the relationship with the US, adding that Canada no longer expects a return to the earlier relationship and has concerns about the reliability of US agreements.