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Canada pledges to match US 50% tariffs after talks fail
The tariff standoff threatens trade in about $880bn of US-Canada goods and services, after Canada rejected a US offer before the Friday midnight deadline.
Canada has promised to match US tariffs “dollar for dollar” after the United States and Canada failed to finalize a trade deal by midnight on Friday, following a three-day extension of talks, the Guardian reports.
Canadian prime minister Mark Carney accused Washington of making “last-minute changes” to the proposed terms that were “unfair, uneconomic” and raised doubts about whether any deal could be relied on.
The Guardian reports the US tariffs are expected to affect about US$20bn worth of Canadian products, with the retaliation escalating a broader trade conflict between the historic allies and putting the future of a North American trade pact involving the US, Canada, and Mexico at risk.
The Guardian also notes the countries sold each other $880bn worth of goods and services last year, and that the tariffs would target roughly 5% of what Canada ships to the US annually, while Canada sought concessions on steel, aluminum, vehicles, and lumber that the US declined to provide.