BBC: Prime Minister Mark Carney has said a fresh wave of US tariffs on Canada is a “miscalculation” designed to “hurt and divide us”, after trade talks collapsed late on Friday.
“They asked too much and they offered too little,” Carney told Canadians on Saturday morning, adding the country was now in a trade “war” after being hit with punishing new US duties.
The prime minister confirmed he would match US tariffs “dollar-for-dollar” from 8 September, including levies on steel, dairy, appliances and electronics.
The collapse of the trade talks upends a deeply integrated trading relationship between two allies, with no clear path to resolution.
US President Donald Trump has yet to comment.
Both countries were optimistic of a deal earlier in the week, but talks fell apart after both sides accused the other of making last-minute changes.
Now that talks have broken down, Canada has been hit with new 50% US tariffs on a range of Canadian goods, in addition to existing US tariffs on Canadian steel, aluminium, automobiles and lumber.
The new tariffs are limited in scope, covering about $20bn (£15bn; C$28bn) of Canadian imports, or about 5% in total, including wine, dairy, cement, clothing and hockey equipment.
The prime minister said Canada was retaliating “reluctantly” to protect its interests. Details of the counter-measures will be released in the coming days, he said.
Leaders of other federal parties in Canada, including the Conservative opposition, voiced support for the prime minister, as have the leaders of some Canadian provinces.
Tariffs – a tax placed on imports from other countries – have been a key component of Trump’s trade policy, with the US president arguing they will boost American manufacturing and create jobs at home.
Critics, however, say tariffs have raised prices for American consumers and have disrupted and damaged the global economy.
