Canada has threatened to match new US tariffs “dollar for dollar” after last-minute trade negotiations between the two countries broke down.
Canadian Prime Minister Mark Carney announced the suspension of the talks shortly before a Friday deadline, saying the latest terms proposed by Washington were unfair and unacceptable.
Carney said the negotiations had made “important progress” but failed to meet Canada’s objectives.
“As a result, this evening, I have decided to suspend trade negotiations with the US,” he said.
The move came after US President Donald Trump threatened to impose a 50 per cent tariff on a wide range of Canadian imports.
The new tariffs, which took effect on Saturday, cover products including wine, dairy, cement, clothing and hockey equipment. They are in addition to existing US tariffs on Canadian steel, aluminium, automobiles and lumber.
US Trade Representative Jamieson Greer, however, blamed Canada for the collapse, accusing Ottawa of introducing new demands and backing away from commitments reached during the negotiations.
Before the talks broke down, both sides had reportedly been discussing a deal that would reduce US tariffs on Canadian steel and aluminium from 50 per cent to 25 per cent, while tariffs on Canadian automobiles could fall from 25 per cent to 15 per cent.
Canada is now preparing retaliatory measures against American goods.
Ontario Premier Doug Ford backed the move, calling for a response that would match the US tariffs “dollar for dollar.”
The latest development threatens to further strain economic relations between the two countries, whose economies and supply chains are closely connected.
US business groups have warned that higher tariffs could increase costs for American consumers, disrupt supply chains and put millions of jobs linked to trade at risk.
US officials have also warned that Washington would respond if Canada imposes counter-tariffs, raising fears of a fresh escalation in the trade dispute.
