Canada vows ‘dollar for dollar’ response at US’ recent 50% tariffs

The US has imposed 50% tariffs on some goods from Canada, and Mark Carney, the country’s prime minister, has vowed to match them “dollar for dollar” after the collapse of trade talks.

The tariffs came into force on roughly $20bn (£14.6bn) of goods – ranging from hockey sticks to tongue depressors – at 04.00GMT. Trade experts said the tariffs could result in some job losses, but the largest impact is expected to be political, driving a further wedge between the traditional allies.

The trade row is the biggest rupture in recent relations between Washington and one of its closest allies and trading partners as Trump’s bellicose foreign policy angered officials in Ottawa. US officials accused Canada of collapsing the deal by seeking additional concessions at the last minute. The US tariffs will affect about $20bn worth of Canadian products, and the US trade representative, Jamieson Greer, said the breakdown represented a “missed opportunity for Canada”.

The two sides appeared close to a deal on Friday to lower tariffs on steel, aluminium and cars, but the deal was scuttled at the last minute. The two sides blamed each other for the collapse.

Canadian officials had worked hard in good faith but “last-minute changes in the US proposed terms were unfair, uneconomic and called into question the reliability of any deal”, Carney said in a statement. Carney recalled his negotiators as Canada vowed to match Washington’s tough approach. No further talks are planned.