Canada retaliates as trade war with US escalates

Canada has retaliated against the United States with tariffs after failing to reach a trade agreement, escalating tensions between the longtime allies. Prime Minister Mark Carney announced new tariffs on Saturday, targeting US steel and dairy industries, with the measures set to take effect on September 8. The impacted products include hockey sticks, cement and others, with the new tariffs covering roughly 5.5 percent of Canadian exports to the United States, valued at about US$20 billion.

The trade war began when the US imposed 25 percent tariffs on Canadian goods on July 1, citing discriminatory treatment by Canada against US alcohol, automobile and dairy products. The US had initially planned to impose the tariffs on Wednesday, but Trump granted a three-day reprieve citing progress in talks. The US accused Canada of imposing restrictions on trade deals with other countries and threatening the French language and Quebec culture, specifically in the province of Quebec.

Carney criticized the US negotiators for proposing new terms that were "uneconomic, unfair and undermined the net benefits for Canada." He stated that Canada will not accept or provide what the US has asked. The US Trade Representative, Jamie L. Greer, responded by stating that Washington was moving forward with measures in response to Canadian retaliation and no new talks were planned with Canadian negotiators.

The US and Canada have yet to agree on revisions to the North American Free Trade Agreement (NAFTA), which the US had declined to renew in its current form. Trump had previously threatened to make Canada the "51st state," further antagonizing Canadians. Democratic lawmakers and governors from border states, including New York Governor Kathy Hochul, have expressed anger over the escalating trade war, blaming Trump for causing chaos that raises costs for US businesses and families.