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US warns Canada against expecting to win a trade war
New 50% US tariffs are set to hit about US$20 billion of Canadian goods, roughly 5.5% of Canada’s exports to the US, after negotiations collapsed.
The Trump administration warned Canada against expecting it could prevail in a new US trade fight, saying a tariff war would have a “devastating” impact on its northern neighbor. South China Morning Post reports the warning came as talks between Washington and Ottawa broke down late Friday.
The US moved to impose new 50% tariffs affecting about US$20 billion worth of Canadian goods, which the report says equals about 5.5% of Canadian exports to the United States. The outlet also notes the United States accounts for roughly 70% of Canadian exports.
Canada said it would retaliate by matching the US tariff action, with new levies targeting US steel and dairy industries, scheduled to take effect on September 8. SCMP Economy reports the dispute is tied to the breakdown in negotiations and the immediate tariff rollout.