Canada Suspends Trade Talks with US Amid Tariff Escalation

Canada has suspended trade negotiations with the US after the US imposed a 50% tariff on nearly $28 billion worth of Canadian imports at midnight. Prime Minister Mark Carney called Washington's last-minute demands 'unfair and uneconomic'.

In response, Canada will retaliate dollar-for-dollar by matching the $28 billion in tariffs to protect its workers and businesses. This move is part of Ottawa's broader economic strategy focused on strengthening the domestic economy and diversifying partnerships abroad.

Canada has been working towards securing a fair deal that provides the best access to the US market and greater certainty for Canadian businesses and workers, but significant progress was not made in recent weeks. As a result, Carney decided to suspend trade negotiations with the US.

The Canadian Prime Minister emphasized that Canada's economy is accelerating, with economic growth on track to record the second-fastest growth in the G7 over the next two years. Exports to non-US markets are increasing, and foreign direct investment in Canada is at its highest level in two decades.