Canada retaliates as trade war with US escalates

Canada has responded to escalating trade tensions with the United States by imposing new retaliatory tariffs, in a further escalation of the ongoing trade war. Prime Minister Mark Carney announced measures impacting about $20 billion worth of goods, or 5.5 percent of Canadian exports, on Saturday. These new tariffs are set to take effect on September 8, targeting US steel and dairy industries, among others.

The move comes after negotiations between the two countries broke down in Washington on Friday, resulting in the automatic imposition of 50-percent US tariffs on Canadian exports. Prime Minister Carney criticized the US proposal as uneconomic and unfair, stating that Canada cannot accept the terms and will not compromise. US President Donald Trump had hoped for a deal with Canada, but Canada's offer was deemed unacceptable, according to Carney.

The trade war has caused job losses and strained the long-standing trade relationship between the two nations. US Trade Representative Jamie Greer confirmed that Washington is moving forward with retaliatory measures, while no new talks between US and Canadian negotiators are planned. Democratic lawmakers and governors from border states have criticized the tariffs, accusing President Trump of needlessly picking fights with allies and raising costs for US businesses and families.

The ongoing conflict also threatens to disrupt the North American Free Trade Agreement (USMCA), which the US has declined to renew in its current form.