Canada says it will match US tariffs 'dollar for dollar' as trade talks break down

What the report says

Canada and the United States have reached another turning point in their trade dispute after talks collapsed at the last minute, according to BBC World News. The BBC reports that a new 50% US tariff on around $20bn in Canadian imports took effect at midnight on Saturday, following weeks of negotiations over tariffs affecting major sectors such as steel, aluminium, autos and lumber.

Canadian Prime Minister Mark Carney responded by suspending the talks and saying Canada would match any US measures “dollar for dollar.” BBC World News said Carney argued the latest US proposal had become unfair and uneconomic, while US trade representative Jamieson Greer blamed Canada for refusing to finalize a deal under terms agreed earlier in the week. The two sides had reportedly been close to a compromise before the deadline.

The BBC said the new US tariffs apply to a range of goods including wine, dairy, cement, clothing and hockey equipment, and add to existing duties already in place. The dispute matters because the United States and Canada are among each other’s biggest trading partners, and business groups on both sides have warned that higher tariffs could raise costs and disrupt supply chains. As context, the article notes that tensions have intensified since Donald Trump returned to office and expanded tariff use.