Trade war enters new phase as Canada readies ‘dollar-for-dollar’ response

Canada is preparing a "dollar-for-dollar" response to the U.S. imposition of 50 percent tariffs on Canadian exports, as trade negotiations broke down earlier this week. Prime Minister Mark Carney is set to announce the counter-tariffs on Monday, September 7, ahead of a trade-related press conference. The tariffs will target sectors like steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, with the measures going into effect after the Labour Day long weekend.

Canada's response comes after weeks of intense negotiations that ultimately failed, with Canada vowing not to accept the U.S. terms and not reciprocate the measures proposed by the U.S. The Canadian Chamber of Commerce has warned that Trump's trade war will be a "body blow to North American competitiveness."