The Latest: Canada’s prime minister promises retaliatory tariffs as negotiations with the US falter

President Donald Trump's 50% tariffs on Canadian imports took effect on Saturday, impacting about 5% of Canada's annual exports to the U.S., valued at roughly $20 billion. These goods include agricultural products, hockey sticks, and various other items. Prime Minister Mark Carney promptly vowed that Canada would retaliate "dollar for dollar" starting September 8.

The tariffs will raise prices for American consumers and companies on a range of Canadian goods, from farming products to industrial equipment. Canada's Prime Minister promised the new measures will be enacted as of September 8, targeting steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics.

Carney suggested that Canada could drop certain retaliatory tariffs on steel, aluminum, and autos if the U.S. significantly lowers its own tariffs. Additionally, Canada expressed willingness to encourage provinces to restore U.S. alcohol sales. However, Carney dismissed Washington's demands as too extreme and accused the U.S. of using "economic integration as a weapon."