Canada vows to match Trump’s 50% tariffs after trade deal talks fail

Canadian Prime Minister Mark Carney vowed to match US tariffs "dollar for dollar" following the failure of trade deal negotiations between the two nations. The US and Canada had been engaged in talks for three days, but were unable to agree on a deal by the midnight deadline on Friday. Carney accused the US of making "last-minute changes in the US proposed terms that were unfair, uneconomic and called into question the reliability of any deal".

The US has imposed 50% tariffs on about US$20bn worth of Canadian products, affecting a range of goods from hockey sticks to tongue depressors. Canadian officials had worked in good faith, but the last-minute changes undermined the reliability of any potential agreement. US Trade Representative Jamie Greer said the breakdown represented a "missed opportunity for Canada", and that Canada had declined to finalize the trade deal under the terms agreed.

The retaliation escalates the trade conflict between the US and Canada, and raises questions about the future of the North American trade pact between the three countries. The political impact of the breakdown is expected to be significant, with both countries selling each other $880bn worth of goods and services annually. Carney said his government would announce additional support for Canadian workers and businesses in the coming days.