Trade negotiations between the US and Canada concluded without an agreement on Friday, resulting in Washington imposing 50% tariffs on $20bn of Canadian goods. This action prompted Canada to announce its own retaliatory tariffs.
Canadian Prime Minister Mark Carney stated that Canada would "match Washington's new tariffs dollar for dollar." The new US tariffs will affect Canadian exports such as wine, furniture, dairy products, cement, clothing, fishing rods, and hockey sticks, covering approximately 5% of Canada's exports to the US. These are in addition to existing levies on cars, aluminium, steel, and lumber.
Canada's retaliatory tariffs on US steel, electronics, dairy, appliances, agricultural equipment, pulp, and paper products are scheduled to take effect on 8 September. Following the collapse of talks, the Canadian dollar dipped 0.2% to C$1.3798 per US dollar, weakening against every other G10 currency.
US President Donald Trump posted that "Canada wants the benefits of being a State, without being one!!! They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!!" Bloomberg reported overnight that Canada sees little chance of talks resuming before the midterm elections.