Canadian Prime Minister Mark Carney has announced that Canada will impose retaliatory tariffs against the United States, matching Washington's measures dollar for dollar, after trade negotiations between the two countries broke down. The announcement was aired as a breaking news update on Sky News, cutting to footage of Carney speaking at a press conference.
The move comes after the United States imposed 50% tariffs on $20 billion worth of Canadian goods. Carney said negotiations had stalled after Washington proposed new terms that he described as "not economic, unfair, and undermined the net benefits for Canada and called into question the reliability of any deal."
Talks suspended and negotiators recalled
Carney said he had suspended trade negotiations with the United States and directed Canadian negotiators to return to Ottawa. He thanked his negotiators, who "worked hard, in good faith - right up to the last minute to defend the interest of Canadians."
He confirmed that Canada will match Washington's new tariffs dollar for dollar to protect Canadian workers, farmers, families and businesses. "This is a focused response to protect and defend our industries and allow them to compete with US products in the Canadian market," Carney said.
Details to be released in coming days
Carney said details of the new tariff measures would be released in the coming days. He insisted he had taken the step "reluctantly," acknowledging that the measures will raise costs and reduce choices for Canadians.
"Reluctantly because we recognise that some US companies in some US states are innocent bystanders in a dispute they did not want," he added. Carney said the move was in Canada's best interests, adding: "By rejecting a bad deal, by standing up for Canada, by focusing on what we can control, we will build Canada strong for all."
Background of rising tensions
Tensions between the two major trading partners have been simmering since Donald Trump returned to office in January last year and introduced a sweeping global tariff programme, disrupting decades of free trade between Canada and the US.
