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Canada to hit back with retaliatory tariffs after US trade talks fail
The trade standoff between Ottawa and Washington has escalated as Canada announced tariffs on US products. The move comes in response to the US saying that tariffs would follow the collapse of talks.
https://p.dw.com/p/5JG3G Advertisement In an ongoing trade dispute with the US , Canada said on Saturday that it would introduce tariffs on several US products starting September 8.
The announcement comes in retaliation to the US imposing 50% tariffs earlier on Saturday on a broad range of Canadian products after the two sides failed to reach a trade deal on Friday.
"Canada will match Washington's new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses," Prime Minister Mark Carney told reporters in Ottawa.
"In the coming days, we will release the details of these new tariff measures, which will come into force the Tuesday after Labor Day,” he said.
While the United States had blamed Canada for declining to finalize the trade pact with Washington on Friday, Carney defended Ottawa's position, explaining, "We cannot accept what they have offered, and we will not give what they have asked."
The US tariffs will affect a broad range of products, including wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment, and cover some $20 billion worth of Canadian exports to its southern neighbor.
Canada's retaliatory tariffs would, in turn, target steel, dairy, appliances, agricultural equipment, pulp and paper and electronics, Carney said.
The US currently accounts for roughly 70% of Canadian exports, making Ottawa potentially more vulnerable in the standoff Carney explicitly described as a trade "war."
"You're at war when you get attacked. We got attacked," he said, adding that Canada had the reserves, resilience and plan to respond.
The fresh tariffs are the culmination of long and tense trade negotiations between the two sides and mark a sharp reversal from just two days earlier, when officials from both sides appeared optimistic that a compromise was in the making.
According to the AP news agency, no further talks were planned to resolve the situation.
The US administration's approach to Canada is a major change from the friendly ties the two countries have traditionally had. US President Donald Trump has often said he wants tariffs on Canadian goods to encourage companies to move manufacturing back to the United States.
He has also made controversial comments about making Canada the 51st US state . Carney said Canada understood that "America has changed" and that the two countries would "not return to their old relationship."
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