Canada to retaliate for US tariffs, worsening ties after talks fail

Ottawa will retaliate against US tariffs imposed on Canadian goods by imposing tariffs of equal value on US products, Prime Minister Mark Carney announced on Saturday. This move comes after trade talks between the two countries failed to reach an agreement, with each side blaming the other for sabotaging three days of negotiations.

The US had initially levied 50% tariffs on Canadian products, prompting Canada to target US steel, electronics, and other goods worth approximately $20 billion in exports. Prime Minister Carney emphasized that Canada will match the US tariffs dollar for dollar to protect Canadian workers, farmers, families, and businesses. The US Trade Representative, Jamie L. Greer, called the breakdown of talks a "missed opportunity" and announced that no new talks were planned with Canada.

US officials also stated that Canada would still benefit from a better deal if they had accepted it. Canada's response includes support measures for industries affected by the new tariffs, with some effects potentially lasting for years. The new US tariffs will affect around 5% of Canada's exports to the US, potentially harming sectors like softwood lumber, wine, and vehicles.

Ontario Premier Doug Ford expressed support for Canada's decision to retaliate, citing the negative impact on Ontario's auto, steel, and manufacturing sectors.