Canada's Carney Hits Back with Retaliatory Tariffs After US Trade Talks Collapse
Apnews · 2 SOURCESabout 1 hour ago2 MIN
Summary
Canadian Prime Minister Mark Carney announced retaliatory tariffs against the United States on Saturday after a final round of trade negotiations collapsed in Washington. The US imposed 50% tariffs on approximately $20 billion worth of Canadian goods early Saturday, and Canada will match that amount dollar for dollar beginning September 8. Carney described the situation as being in a trade "war" and declared the decades-long close Canada-US economic relationship effectively over.
Key Points
- US tariffs of 50% took effect early Saturday on Canadian goods worth roughly $20 billion, affecting about 5.5% of Canada's exports to the US
- Canada will impose matching retaliatory tariffs on US goods starting September 8, targeting steel, dairy, appliances, and electronics
- Negotiations broke down Friday in Washington after the US proposed terms Carney called "uneconomic, unfair," and unreliable
- Carney stated: "You're at war when you get attacked. We got attacked," and declared the old Canada-US relationship is over
- The US offered tariff reductions on steel, aluminium, autos and lumber in exchange for concessions, but no further meetings are scheduled
- Canadian travel to the US remains sharply lower than before the dispute, with July return trips down nearly
Why It Matters
The collapse of trade talks signals a fundamental rupture in one of the world's closest and most durable alliances, with both nations now facing the risk of a full-scale trade war that could reshape North American economic integration . The dispute has fueled a sense of betrayal in Canada and raised questions about the reliability of any future agreements with the Trump administration .
The collapse of trade talks signals a fundamental rupture in one of the world's closest and most durable alliances, with both nations now facing the risk of a full-scale trade war that could reshape North American economic integration . The dispute has fueled a sense of betrayal in Canada and raised questions about the reliability of any future agreements with the Trump administration .