RESOLVING THE LEDGER
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Tariffs of 50% on Canadian goods came into effect after trade talks collapsed. US President Trump has warned Ottawa to "fall in line," but Canadian Prime Minister Mark Carney has refused to accept a "bad deal."
https://p.dw.com/p/5JLJ5 Advertisement Canada is set to announce retaliatory tariffs against the United States on Tuesday, as relations between the neighbors nosedived following failed trade talks last week.
While the US and Canada have shared one of the world’s largest trade relationships, the recent talks signal a breakdown in relations.
"An attitude at the negotiation table that Canada is a subsidiary of the United States" is "not something we’re going to accept," Canadian Prime Minister Mark Carney said.
"We learned during the negotiations that the Americans want to destroy our major industries, including autos, steel and aluminum," Carney said, opting for an even blunter approach in French. "That was one of the main reasons we said no. It was a bad deal."
US-Canada trade war: The cost of fighting back To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
Finance Minister Francois-Philippe Champagne and three other Cabinet ministers are expected to unveil Canada's response on Tuesday.
Trump, on Monday, threatened he would impose a 50% tariff on Canadian automobiles, car parts and steel from January 1, 2027, and took to social media to unleash a tirade against the historic partner.
Trump hits Canada with 50% tariffs in major trade escalation To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video
"On trade, and in other ways, also, they are among the worst nations in the world to deal with. They feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US!" the US president said.
Canada relies heavily on the US as its top trading partner, with American-bound exports making up 70% of the country's total. The relationship runs both ways, too: government data shows Canada was the second-largest US trading partner in goods this year, just behind Mexico.
No further negotiations are currently scheduled.
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