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

Canada will match U.S. tariffs dollar for dollar in response to a breakdown in trade talks, Prime Minister Mark Carney announced on Saturday. The move comes after the U.S. imposed fresh tariffs on a wide range of Canadian goods, including wine, dairy, cement, clothing, and hockey equipment. Carney stated that the last-minute changes in U.S. proposed terms were unfair and called into question the reliability of any deal.

The U.S. trade representative expressed disappointment, noting that Canada's recent demands and "walk backs" had disrupted the progress made in negotiations. Canada will be hit with new 50% tariffs imposed by the U.S. using the Tariff Act of 1930, affecting about 5% of Canadian exports. The Canadian Chamber of Commerce warned that the tariffs pose a significant threat to North American competitiveness, particularly for small exporters on tight margins.

The break in talks puts the U.S.-Canada relationship in uncharted territory, with the two countries having a deeply integrated trading relationship. Premier Doug Ford of Ontario, a key manufacturing and auto sector province, backed the strong response, pledging a dollar-for-dollar match of tariffs.