alt Hacker NewsCanada will match US tariffs 'dollar for dollar' as trade talks break down
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The world should've collectively recognised what Liberation Day was and responded together, in lock step, and in kind.
Instead, the Europeans caved, Japanese caved (PM resigned after doing so), Republic of Korea caved (PM resigned after doing so), India of course caved and so on, shattering any prospect of collective action which might pull the rogue hegemon back into line.
Now, the US is simply able to renege or renegotiate the bilateral deals whenever he feels like it, forcing the other party to face down the US by themselves - not many can do this, maybe only China. Anyways, I wish the Canadians well and I hope they gain global support
This was totally the right move, if for no other reason than it's the only thing that this US admin will respect in the long run.
Being in Canada though this does look v. short sighted of the US. All this is going to achieve is pushing Canada much closer to other countries, particularly China, which at least superficially these negotiations were meant to prevent.
This is the way. If the US imposes tariffs, impose tariffs on US goods.
The US administration twists facts to suit their agenda. For example, they often complain about the trade deficit the US has with other countries. However, that deficit often (depends on the country) only exists if you exclude digital goods (Microsoft, Google, Apple, etc.).
If the rest of the world were to restrict the import of those digital goods, in the interest of fairness, the tech lobbyists would swarm D.C. in panic.
We are leaving the time when trust allowed trade agreements that went beyond the maximum minimum with the US. Trust allowed countries to make agreements with the US that had obvious potentials for exploitation, but overall they were followed to the greater benefit of both. Trust enabled that. Now the US has decided to break trust and countries know it. That lost premium means a major loss in value to both sides but ultimately the US will be the biggest looser because the other algorithm here is tit for tat. In a world economy, countries that cooperate will thrive and those that exploit will fail. We are seeing completely uneducated, emotion driven, economic policy play out.
Good for Canada, quite a shame the EU folded so easily
I'm sorry. As an American. The United States has no business treating Canada like some hostile foreign power. We're a grotesque country right now.
I’m interested to see if this spurs other countries to push back on this administration. Once you get a couple of countries to collectively stand firm is when things take a turn. Bullies can only push for so long
Very interesting speech and Q&A from Prime Minister Carney on YouTube https://www.youtube.com/watch?v=Dx9ExdjaREg .
He provides some details about the last minute demands that the US made including restricting Canada's ability to trade with other countries. He also refers to the US signature as being written in "pencil".
Nice to see them putting up a fight. Though I assume this will cause pain for everyone.
One note: aren't these sentences strange - like a series of half-thoughts? Especially the 2nd paragraph.
> Our government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market. > > We have worked in that context. To strike a fair deal that would provide the best access to the U.S. market and greater certainty to Canadian businesses and workers.
If Alice and Bob strike a deal then Alice must be confident that an acceptable subset of her interests are met and that Bob will stick to the deal.
If Bob shows evidence of not sticking to deals, there's little point in Alice striking any deal.
Won’t work out well for either side, namely citizens and leadership aside.
Wearing my forecasting hat…
Canada holding $200 billion in USA treasuries, one of the largest exporters of oil into the USA, and integrated supply chains for everyday goods. A fast and painful price shock is coming for every average American.
Canada has and will continue to be very dependent on the USA. No amount of new trade partners can change the fact that the largest economy in the world is a 2-hour trip down the road while everyone else is an ocean apart. This has a risk for long-term price pain for decades.
I wonder what would happen if Canada taxed electricity exports to the US, and used the money to directly subsidize other exported goods the US applies tariffs to?
It has been shown time and time again that the only thing the US administration respects is brutish headbutting, so I cannot blame the Canadian government for responding with such a stance. It is unfortunate for everyone though that it is happening. Ultimately, these tariffs just tax the consumer for no real gain on either side. I think I speak for many when I say 2028 cannot come soon enough.
A few months prior to the midterms is exactly the right time for this sort of action. If the voters keep seeing prices increase because of Trump's tariffs, it increases the odds that the republicans will lose the legislative branch and will be able to act as a check on Trump's power. Ideally some other countries will follow suit.
This will cause some short term pain for Canada, but hopefully they'll have a less insane trading partner after November.
Reciprocity, if well designed, automatic and generalized, is a great diplomacy tool.
Politicians tend to not want to do things that display them as directly responsible for eroding their support base’s quality of life.
The Atlantic has just posted a piece about this [0] in which it argues many points echoed in comments here. Chief among them:
> The Trump administration has one big idea about Canada: The U.S. is larger, stronger, and richer than Canada, so Canada must sooner or later surrender to Trump’s demands. That one big idea is wrong.
> Yes, Trump can hurt Canada more than Canada can hurt Trump. That part of Trump’s thinking is true. But wars are not decided only by the question Who can inflict more pain? Wars are also decided by the question Who can endure more pain? Trump’s failure to accept this truth is why he lost the Iran war—and why he is losing his trade wars.
[0] https://www.theatlantic.com/ideas/2026/08/why-us-canada-trad...
Its nice to see some backbone, but the challenge for Canada is that it’s broadly in a weak negotiating position here. Generally speaking Canadian companies need access to the US market a lot more than US companies need access to the Canadian market.
I get it, but tariffs will only make things more expensive for Canadians, too.
I've got a better idea.
1) Repeal all DMCA-like laws. Make it explicitly legal to break a digital lock to repair a device, run custom code, install third-party parts, or just tinker and hack with your own devices and software.
2) Ban parts-pairing. Prohibit manufacturers (looking at you Apple & John Deere,) from using cryptographic serialization to block independent mechanics and technicians from swapping parts.
3) Legalize "Adversarial Interoperability" (https://www.eff.org/deeplinks/2019/10/adversarial-interopera...)
4) Copyright reform.
That's it. This would make things cheaper and better for Canadians. Lutnick and Trump would seethe eternally, but it would be downright excellent for Canada and a shining beacon unto the world.
This is on targeted industries, not on 50% of all trade. In particular, the largest industries are
Motor Vehicles, Alcohol, and Dairy per
https://www.newsweek.com/full-list-of-us-trade-tariffs-hitti...
Can the US even afford a trade war, they are beginning to find borrowing more money increasingly difficult… currently the debt is around $130k for every man, woman and child in the US.
Remember the halcyon days of “earlier this year” when the Supreme Court ruled these tariffs illegal and unconstitutional?
The average American suffers being hated for this government and I say this currently sitting in a town filled with fly in rich American tourists to keep it alive. IMO the only retaliatory pain point for Americans to start to care will be taxing discounted oil, electricity, fertilizer, and transits of everything to Alaska. But they’ll just blame rather than support Canada. I don’t like Doug Ford or his policies but hopefully he brings up the electricity thing again as leverage because it won’t happen in the other sectors given AB separatism and SK being, well, SK.
Canada needs to create an "Economic Reparations Fund" to help those workers and companies harmed by trump's tariffs. Its initial funding should come from selling $10B of US bonds (Canada is ~5th largest holder) and a 5% surcharge on oil exported to the US. US already extracts a 12-22% discount off world oil prices from Canada (who's taking advantage of who?) so 5% shouldn't be an issue. As needed to cover damages, more bonds could be sold and the oil surcharge could be raised.
Meanwhile Israel is sucking USA empty and they call out Canada for being not "fair".
What a sick people.
Time for War Plan Crimson. https://www.globalsecurity.org/military/ops/war-plan-red-cri...
The Art of the Lose-Lose Deal!
For some perspective about what’s being negotiated:
“What’s at stake in the Canada-U.S. trade deal? How looming tariffs could cost Canada 90,000 jobs”. Trevor Tombe, professor of economics at the University of Calgary
https://thehub.ca/2026/08/20/whats-at-stake-in-the-canada-u-...
Reciprocal tariffs alone don’t make much sense, it’s just making things for Canadians more expensive with an adversary that’s larger and can sustain them longer (although how long remains to be seen with guilt yields rising.)
If they really want to hurt them start making it legal to circumvent DRM on American products and allow build meaningful replacements.
I don’t blame them, even if you cut a deal the president sees something on social media and comes back for more tariffs.
True North, Strong and Free
I've always said that the only way Trump would "Make America Great" would be to show the world how completely hollowed out by kleptocrats we've become.
These moves increase other countries independence of us, lessening our power and forcing us into a more post America world.
If Trump isn't a double agent then he missed his calling. It feels like every decision they are making is intentionally the "wrong" one.
Huh 30% of our lumber just got 50% more expensive. Good thing we don't have shortages of affordable housing that need new construction to solve. Brilliant stuff Donald. Truly some 4D chess moves.
Is YC News an American website? It seems like all the comments are advising against American interests with regards to tariffs.
You cannot negotiate with a country that doesn’t stand by its word.
All other issues aside, Trump and the Republicans love to boast that they aren’t bound by anything including their own promises. This is the end result of that.
You’d be mad to cut a deal with the US right now. The Trump Admin will just try to take another bite. They are dishonest and unreliable. Making America’s word mean nothing is the greatest long term damage done to the country and the surest indicator of the end of the American Century (80 years but we can round up)
I think a retaliation for a tariff should be an export tax. Let's say Canada puts a 50% export tax on maple syrup unless the car tariff is withheld
Note that these new tariffs are on goods covered by CUSMA, making that treaty inoperative. Pity it’s one Trump signed…
One must stand up to bullies otherwise they’ll keep at it. Until the US population feels the pain the rest of the world has been dealing with, nothing will change.
Everything you need to know about Canada is on a population density map.
The craziest thing is, that in spite of the obvious, balatant corruption and supreme incompetence of the US govt, Trump still has around 35% approval rating.
That means the hardcore MAGA base is a third of the US population. I genuinely don't know how to reconcile that with the long term future of the United States.
Looking past the political posturing i cannot even find any objective information about what the terms were. I just wish they could say what was the state of the deal and why it broke down in some detail.
People who elected this clown are more dangerous
These tariffs will be struck down as unconstitutional just like the ones Trump attempted under the IEEPA were. Any company who paid in the meanwhile will be compensated while consumers will get the short end, so it will be a nice payday for northern importers.
It's Congress who has the power to tax. If Trump wants tariffs he needs to propose a bill that creates them or gives him clear powers. The legal scholars in his cabinet know this, so why has he not proposed a bill?
I though politics was to be kept out of Hacker News?
Amazing that in 2026 Canada, Iran, and US Circuit Courts have the same stance: the US federal government cannot be trusted to tell the truth about anything. Fish really rots from the head.
Everything the current US administration has done has been an unmitigated disaster. Tariffs are taxes. Manufacturing is still declining, not returning and a man who could not run casinos successfully is not going to change that. His economic and foreign policy are dictated entirely based on who flatters him the most. Add to that continued environmental damage, domestic policy dictated by a regressive religious minority and a lack of interest in performing the duties of the position in favor of caring about only what it can be leveraged for. A failing state operating on grievances and stupidity.