Canada retaliates as trade war with US escalates

Canada's Prime Minister Mark Carney imposed retaliatory tariffs on the United States on Saturday, following the breakdown of trade negotiations between the two longtime allies. The new 50% US tariffs, affecting about US$20 billion worth of goods, or 5.5% of Canadian exports to the US, will take effect on September 8. These impacts encompass a wide range of products, including hockey sticks and cement.

Prime Minister Carney labeled the US proposal as "uneconomic, unfair, and undermining the net benefits for Canada," citing it as unacceptable. US President Donald Trump had earlier expressed dissatisfaction with Canada's stance, citing his "good relationship" with Carney. Canada's decision to impose tariffs stems from the US's proposed new terms, which were deemed "discriminatory" by the White House.

These tariffs primarily target the US steel and dairy industries. The escalating trade war has sparked outrage among Democratic lawmakers and governors from border states, who blame Trump for causing economic chaos. The Business Roundtable, representing 200 leading US corporations, warned that the new tariffs might raise costs for American businesses and families, urging both governments to resume negotiations.