Canada retaliates as trade 'war' with US escalates
A trade dispute between the US and Canada has escalated, with Canada announcing retaliatory tariffs on US steel and dairy products following a breakdown in negotiations. US President Donald Trump has criticized Canada's trade stance, while Canadian PM Mark Carney labeled the US terms as uneconomic and unfair.
Why it matters
The breakdown in trade relations between these two major North American economies threatens to disrupt supply chains and impact industries ranging from automotive to agriculture.
US President Donald Trump has hit back at Canada after Prime Minister Mark Carney announced retaliatory tariffs on the United States following a breakdown in trade negotiations.
"Canada wants the benefits of being a State, without being one!!!" Mr Trump said in a post on Truth Social.
"They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!" he said.
Mr Carney said that new Canadian tariffs would take effect on 8 September, notably targeting the US steel and dairy industries.
New 50% US tariffs impacting about $20 billion worth of goods, or 5.5% of Canadian exports to the US, came into force yesterday.
Impacted products range from hockey sticks to cement.
"You're at war when you get attacked. We got attacked," Mr Carney said.
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