Canada will match US tariffs 'dollar for dollar,' Carney says

Canada and the US have failed to reach a trade deal, with Canada's Prime Minister Mark Carney announcing that he will impose reciprocal tariffs on US goods "dollar for dollar" in response to a fresh wave of US tariffs on Canadian goods. The US tariffs, which came into effect at midnight on Saturday, will impose a 50% levy on nearly $20bn of Canadian imports. Carney said that last-minute changes to the US proposed terms were "unfair, uneconomic, and called into question the reliability of any deal".

The breakdown in trade talks came after intense negotiations between the two countries since July. US President Donald Trump had temporarily paused the tariffs earlier in the week, saying the two sides were close to signing a trade deal that was "very good" for both countries. However, Carney said that while "important progress" had been made in the talks, it was "not enough to meet our objectives for Canadians".

The US trade representative, Jamieson Greer, said that Canada had declined to finalize the trade deal under the terms agreed earlier in the week, citing new demands and walk backs of other commitments by Canada. The US tariffs will hit about 5% of what Canada ships to the US every year, including products ranging from hockey sticks to tongue depressors. According to The Guardian, the two countries sold each other $880bn worth of goods and services last year.

Brief written by urgent.news from Euronews, KBC, KahawaTungu, Live Mint, The Guardian — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.