Prime Minister Mark Carney spoke about Canada's response to new US tariffs during a news conference in Ottawa on Saturday. (AP: Patrick Doyle/The Canadian Press)
Canada will impose retaliatory tariffs on the United States, Canadian Prime Minister Mark Carney has announced.
The move comes after the US imposed 50 per cent tariffs on $US20 billion ($AU27.9 billion) worth of Canadian products, and negotiations between the countries fell apart.
Canada's dollar-for-dollar retaliation will come into effect on 8 September.
Canada says it will retaliate after the United States imposed 50 per cent tariffs on $US20 billion ($AU27.9 billion) worth of Canadian products.
The United States and Canada have failed to reach a trade deal, and the US says it will impose 50 per cent tariffs on some imports from Canada.
After last-ditch negotiations failed to resolve the latest strain in relations between the historic allies, Canadian Prime Minister Mark Carney said on Saturday that the retaliatory tariffs would come into effect on 8 September.
"In the coming days, we'll release details of these new tariff measures, measures which will come into force the Tuesday after Labor Day," Mr Carney told a news conference in Ottawa.
US President Donald Trump's import taxes will hit about 5 per cent of what Canada ships to the United States every year, including products ranging from hockey sticks to tongue depressors.
Canada's dollar-for-dollar retaliation will target steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.
Mr Carney disclosed that Canada had been willing to drop remaining retaliatory tariffs on steel, aluminium and autos if the United States substantially lowered its own, and to encourage provinces to restore US alcohol sales.
But he said Washington's final demands went too far, saying, "They asked too much and offered too little."
Canada's dollar-for-dollar retaliation will target steel and other products. (AP: Nick Iwanyshyn/The Canadian Press)
The retaliation also calls into question the future of a North American trade agreement covering the United States, Canada and Mexico that is crucial to industry in all three countries.
Canada had sought concessions on tariffs on steel, aluminium, autos and lumber.