Canada set to announce retaliatory tariffs on US goods after talks fail

Canada has announced retaliatory tariffs on U.S. goods following the failure of recent trade talks, announced the government of Prime Minister Mark Carney on Tuesday. The move comes as Canada's relations with its neighbor falter. As part of the retaliatory measures, Ottawa will impose tariffs on around 700 US products starting September 8, ranging from 15% to 50%.

These include sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. This is the third major trade dispute between the two nations during Trump's presidency. Canada's Finance Ministry had engaged in negotiations with the US in good faith but suspended talks after US proposals were deemed unfavorable.

The ministry described the counter-tariffs as "dollar-for-dollar, rate for rate counter-tariffs", and a "multi-billion dollar support package" to protect businesses, workers, farmers, and families. Canada's largest trading partner, the US, is the second-largest trading partner for Canada. The breakdown in relations has been attributed to Canada's perception of being treated as a 'subsidiary' of the United States.