Canada vows ‘dollar for dollar’ response as US puts 50% tariffs on some goods

The two sides blamed each other for the collapse.

The two sides blamed each other for the collapse. Composite: Dylan Martinez/Reuters View image in fullscreen The two sides blamed each other for the collapse. Composite: Dylan Martinez/Reuters Canada vows ‘dollar for dollar’ response as US puts 50% tariffs on some goods Collapse of trade talks could lead to job losses, but biggest impact on traditional allies is expected to be political 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 Donald Trump’s bellicose foreign policy angered officials in Ottawa. 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.

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”. Recriminations continued on Saturday with Carney accusing the Trump administration of using “economic integration as a weapon” – and saying that his country had been “attacked” by the new US tariffs. Carney accused the Trump administration of adding last-minute terms that would have reduced tariff relief for Canadian-made vehicles, restricted Canada’s ability to strike trade deals with other countries and weakened protections for language, culture and sovereignty. He called the demands “unacceptable”. Carney said the Trump administration’s final demands went too far: “They asked too much and offered too little.” Greer said the US was compelled to act after a year of retaliatory measures by Canada. “We’ve said enough, and so we’ve taken countermeasures,” he told Fox & Friends Weekend. “Our interest is in protecting American workers and protecting American supply chains.” Greer said the US was offering to cut tariffs on steel, autos and lumber, “things that are sensitive for them”. “And they’ve always had the best deal, and they still would have an even better deal, but they didn’t want that,” Greer said. Therefore, he said, “We’re moving forward with measures that respond to Canadian retaliation.” Greer said the US offer was forward-looking and included “a historic economic and national security partnership”. The retaliation escalates the two countries’ trade conflict and calls into question the future of a North American trade pact between the US, Canada and Mexico that is crucial to industry in all three countries.

Trade experts have said the tariffs could subject some already-vulnerable sectors to economic strain, potentially leading to job losses and stores closing. Trump’s import taxes will apply to about 5% of what Canada ships to the US every year. The inventory is broken down into categories and, in its minutiae, provides a fascinating insight into cross-border commerce and market demands contained within an international trade dispute. Under dairy, it includes milk and cream, whey and milk protein concentrates, bones and horn-cones, lactose, glucose, fructose and blended syrups, sugars, cane molasses, non-alcoholic beer and essential oils of peppermint. The alcohol order includes beer, wine, liquor, cider and other fermented beverages. Other products include essential oils of grapefruit, densified wood blocks, plates, strips, skewers and ice cream sticks, as well as bamboo products, basketwork, grease-proof paper and ice hockey and field hockey equipment. Another category includes natural honey, down feathers, tortoise shell, whalebone, horns, antlers as well as tulips and other dormant flower buds, live orchids, mushroom spawn, tubers, mosses and lichen and vegetable, tree and shrub seeds. The list goes on to include cements, candles, plastic furniture fittings, dog leashes and saddles, T-shirts, sweaters, trousers, dresses, wigs, false beards, eyebrows of synthetic material, floating docks, vessels and rafts, chandeliers, Christmas and other festival decorations, ice skates, swimming and wading pools, and fishing rods. Canada sought concessions on steel, aluminium, vehicles and lumber that the US was unwilling to provide, a senior Trump administration official told reporters.

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