Canada retaliates as trade war with US escalates

OTTAWA: Canadian Prime Minister Mark Carney announced retaliatory tariffs on the United States on Saturday after negotiations for a trade deal broke down in Washington. The new 50% tariffs affect around US$20 billion worth of goods, which make up 5.5% of Canada's exports to the US. Products affected include hockey sticks and cement.

Carney called the proposed US terms "uneconomic, unfair, and undermining the net benefits for Canada." He stated that Canada will not accept the offer made by the US. The tariffs will take effect on September 8 and will target the US steel and dairy industries. US President Donald Trump had expressed interest in a deal, citing his positive relationship with Carney.

However, Carney accused the US of setting unacceptable conditions and called the proposed deal "candid and not acrimonious." Meanwhile, US trade representative Jamie Greer stated that no new talks were planned. Canada has been seeking relief from Trump's tariffs on autos, steel, and aluminum, which have negatively impacted the economy, causing job losses and damaging the historically strong trade relationship.