Canada says it will match US tariffs 'dollar for dollar' as trade talks break down

The United States imposed fresh tariffs on Canadian goods on Saturday, following the breakdown of trade talks between the two nations. Canadian Prime Minister Mark Carney announced that Canada would reciprocate with dollar-for-dollar tariffs on US goods. The negotiations had been ongoing since July after President Trump threatened to levy a 50% levy on nearly $20 billion worth of Canadian imports by August 19.

While negotiations had made "important progress," Carney said it was not enough to meet Canada's objectives. The US had temporarily paused the tariffs earlier in the week, claiming a "very good" deal was nearing completion. However, Carney stated that last-minute changes in US terms were "unfair, uneconomic, and called into question the reliability of any deal."

The US trade representative criticized Canada's last-minute demands and reversals, stating that they had disrupted the balance reached in recent days. The breakdown of talks marks a significant shift in tone from earlier optimism. Canada will now face 50% US tariffs on a range of goods, including wine, dairy, cement, clothing, and hockey equipment, in addition to existing tariffs on steel, aluminum, autos, and lumber.