Canada Suspends Trade Talks With US Amid Fresh Tariff Battle

Trade talks between the US and Canada have collapsed, leading to a fresh tariff battle. The US imposed 50% tariffs on nearly $28 billion worth of Canadian imports, prompting Canada's Prime Minister Mark Carney to suspend trade negotiations and vow retaliation.

Carney said that while significant progress had been made towards improving Canada's position in the trade negotiations, it was not enough to meet Ottawa's objectives. He accused the US of making 'unfair and uneconomic' demands at the last minute, forcing Canada to pull its negotiators back to Ottawa.

Canada will match the $28 billion in levies imposed by the US with matching tariffs, Carney said. The Canadian government has been working to diversify trade partnerships and strengthen its domestic economy, he added, citing a 11.1% increase in exports to non-US markets last year.