Canada retaliates as trade war with US escalates

Canadian Prime Minister Mark Carney announced retaliatory tariffs on the United States after negotiations on trade between the two longtime allies broke down. This comes after $20 billion worth of US goods, making up 5.5 percent of Canadian exports to the US, were subject to new 50-percent tariffs. Prime Minister Carney described the US's proposed terms as "uneconomic, unfair and undermined the net benefits for Canada," and stated that Canada would not accept them.

The new Canadian tariffs, targeting US steel and dairy industries, will take effect on September 8. US Trade Representative Jamieson Greer stated that Washington was moving forward with retaliatory measures and no new talks were planned. Canada's anger at the trade war was echoed by Democratic lawmakers and governors from border states, blaming President Trump for economic chaos.

Canada must now reduce its reliance on the US, which currently accounts for about 70 percent of Canadian exports.