Canada retaliates as trade war with US escalates
Canada has announced retaliatory tariffs against the United States following the breakdown of trade negotiations and the imposition of new US tariffs. Prime Minister Mark Carney stated that the US terms were unacceptable, escalating the trade dispute between the two nations.
Why it matters
This escalation threatens to disrupt North American supply chains and strain long-standing diplomatic and economic ties between the US and Canada.
OTTAWA, Canada - Canadian Prime Minister Mark Carney announced retaliatory tariffs on the United States on Saturday, after walking away from a "bad deal" on trade in a deepening rift between the longtime allies.
Negotiations between the neighboring countries broke down Friday in Washington, putting into force new 50-percent US tariffs impacting about $20 billion worth of goods, or 5.5 percent of Canadian exports to the United States.
Impacted products range from hockey sticks to cement.
"You're at war when you get attacked. We got attacked," Carney said.
US President Donald Trump had said Washington "should be able to have a deal with Canada," citing his "good relationship" with Carney.
But on Saturday, Canada's prime minister said Trump set conditions that were ultimately unacceptable even though earlier talks had been positive.
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