Canada says it will match US tariffs 'dollar for dollar' as trade talks break down
Trade negotiations between Canada and the US have collapsed, leading to the implementation of new US tariffs on Canadian goods. Canadian Prime Minister Mark Carney has announced reciprocal 'dollar for dollar' tariffs in response to the breakdown.
Why it matters
The escalation of trade tensions between these two major economic partners could have significant impacts on North American supply chains and consumer prices.
Image source, Reuters Image caption, Prime Minister Mark Carney said progress in the talks was not enough to meet Canada's objectives
A fresh wave of US tariffs on a wide array of Canadian goods came into effect on Saturday after a last-minute breakdown in trade talks.
Announcing the suspension of negotiations shortly before the Friday night deadline, Canadian Prime Minister Mark Carney said he would impose reciprocal tariffs on US goods "dollar for dollar".
Carney said "last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal".
Trade negotiators had been engaged in intense talks since July, after President Donald Trump threatened to impose a 50% levy on nearly $20bn (C$28bn; £14bn) of Canadian imports by 19 August.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in