US, Canada deepen trade war as sides fail to reach tariff deal
Canada would match US tariffs "dollar for dollar", says Prime Minister Mark Carney.
The United States and Canada have intensified their trade war after failing to reach a tariff agreement, with Canada preparing retaliatory measures from September 8. Canadian Prime Minister Mark Carney rejected US trade terms and accused President Donald Trump of offering conditions that were "uneconomic, unfair, and undermined the net benefits for Canada."
New 50-per cent US tariffs on some US$20 billion worth of goods, or 5.5 per cent of Canadian exports, will take effect on September 8, impacting products ranging from hockey sticks to cement. Carney described Trump's demands as "too much and too little," accusing him of launching a trade war. Canada seeks relief from Trump's tariffs on autos, steel, and aluminum, which have harmed the economy and caused job losses.
The dispute also encompasses revisions to the North American Free Trade Agreement (USMCA), with Trump declining to renew it in its current form. The trade spat has been exacerbated by Trump's threats to treat Canada as the 51st US state and by Carney's speech at the World Economic Forum in Davos, where he expressed concerns over the global order.
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