Canada Slams Back at US Tariffs with Retaliatory Measures

Canadian Prime Minister Mark Carney announced that Canada will impose retaliatory tariffs on US goods in response to President Donald Trump's 50% levy on $20 billion of Canadian products. The new tariffs, which will take effect on September 8, target US steel, dairy, appliances, agricultural equipment, pulp and paper, electronics, and other goods.

The move follows three days of intensive negotiations between the two governments that broke down late Friday. Carney blamed Washington for the collapse, saying its final proposals were 'uneconomic, unfair' and undermined the benefits Canada would receive from an agreement.

Trump accused Canada of seeking the advantages of being a US state without actually being one, and said that Canada had charged US farmers 'massive amounts of tariffs' for years. Carney countered that Canada would not compromise on protecting its languages or culture, which Trump's team had sought to restrict in negotiations.

The breakdown in talks has raised concerns about the future of the US-Mexico-Canada Agreement, and Canadian business groups warn of a difficult period ahead as the effects of the tariffs are felt. Carney said Ottawa would introduce support measures for affected workers and businesses, but acknowledged that Canada's economy would be strained by the new duties.