Mark Carney says Canada "as is its right, merely matched" US car tariffs

On July 20, 2026, President Donald Trump imposed 50% tariffs on a broad range of Canadian imports under a seldom-used 1930s trade law, citing what his administration called Canada’s discriminatory treatment of American cars, alcohol, and dairy products. The new duties, affecting roughly $20 billion in goods, are set to take effect in August. Canadian Prime Minister Mark Carney responded by noting that his country had simply applied the same tariff rate to American cars that Washington first placed on Canadian vehicles, an action Carney argued was allowed under trade rules. The dispute escalated after Canadian provinces pulled U.S. alcohol from shelves in retaliation for earlier U.S. tariffs. The White House pointed to steep drops in U.S. auto and alcohol exports to Canada, while Carney stated Canada remains open to negotiations.