Story perspectives

Carney Says Canada Matched U.S. Tariffs Dollar-for-Dollar

By Drooid · Sep 29, 2026, 1:59 AM UTC · How we work

Summary

Story summary

Prime Minister Mark Carney said Canada matched U.S. tariffs dollar for dollar, raising consumer prices.
Ian Lee, Carleton University associate professor, warned the tariffs will damage Canada’s own economy.
OECD reported Canadian workers earned $75 per hour in 2023, versus $97 in the United States.
Canada’s manufacturing productivity rose 0.5% annually from 2010-2023, outpacing the U.S. 0.34%.

History

Historical Context

The Smoot-Hawley Tariff Act of 1930, championed by U.S. President Herbert Hoover and Congress, sharply raised American import duties. Canada, under Prime Minister William Lyon Mackenzie King, retaliated with 20 % tariffs on U.S. goods, cutting bilateral trade by roughly 30 % in 1931. Today, Prime Minister Mark Carney’s decision to match U.S. tariffs echoes the 1930 approach, prompting economist Ian Lee’s warning of cost spikes. The 1930 episode proved reciprocal tariffs depress wages and productivity, implying Canada’s current policy could similarly erode purchasing power and growth.

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Story summary

Prime Minister Mark Carney said Canada matched U.S. tariffs dollar for dollar, raising consumer prices.
Ian Lee, Carleton University associate professor, warned the tariffs will damage Canada’s own economy.
OECD reported Canadian workers earned $75 per hour in 2023, versus $97 in the United States.
Canada’s manufacturing productivity rose 0.5% annually from 2010-2023, outpacing the U.S. 0.34%.

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