Canada retaliates as trade 'war' with US escalates

Canadian Prime Minister Mark Carney announced retaliatory tariffs on the United States, following a breakdown in trade negotiations and growing tensions between the two longstanding allies. The escalating trade war saw the U.S. impose 50-percent tariffs on approximately $20 billion worth of Canadian goods, impacting industries such as steel, cement, and hockey sticks.

Carney stated that Canada could not accept the unacceptable terms proposed by the U.S., and would not reciprocate their demands. The new Canadian tariffs would take effect on September 8, targeting industries such as U.S. steel and dairy. US Trade Representative Jamie Greer stated that the U.S. was moving forward with retaliatory measures, and no further talks were planned.

The trade war has been particularly damaging to Canada's economy, with job losses and strain on an otherwise robust relationship. Democratic politicians and border state governors have criticized President Trump for triggering economic chaos. The ongoing trade dispute also includes the renegotiation of the North American Free Trade Agreement (USMCA), with the U.S. allegedly withdrawing from the previous version.

Canadian Prime Minister Carney expressed his belief that relations with the U.S. have forever been altered, and Canada should reduce its reliance on the southern neighbor.