Canada retaliates as trade war with US escalates

Canadian Prime Minister Mark Carney announced retaliatory tariffs on the United States on Saturday after failing to reach an agreement on trade, deepening tensions between the longtime allies. Washington imposed new 50-percent tariffs on approximately $20 billion worth of goods, impacting 5.5 percent of Canadian exports to the United States.

These products include hockey sticks and cement. Prime Minister Carney stated, "You're at war when you get attacked. We got attacked." US President Donald Trump had expressed hope for a deal, citing their "good relationship." However, Canada's Prime Minister said that the proposed new terms were "uneconomic, unfair, and undermined the net benefits for Canada."

New Canadian tariffs will target US steel and dairy industries, starting on September 8. Meanwhile, US Trade Representative Jamieson Greer said Washington was moving forward with retaliatory measures and no further talks were planned. The collapse of talks has raised concerns about the escalating trade war.