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Canadian Prime Minister Mark Carney has announced retaliatory tariffs on United States (US) goods after rejecting what he called an unfair trade offer from President Donald Trump.
The announcement came on Saturday after trade talks between Canada and the United States broke down in Washington on Friday.
The collapse of the talks has allowed new 50 percent US tariffs on about $20 billion worth of Canadian goods to take effect.
The affected products include hockey sticks, cement and other goods, representing about 5.5 percent of Canada’s exports to the United States.
Carney said Washington had demanded too much while offering too little during the negotiations.
“We cannot accept what they’ve offered, and we will not give what they’ve asked,” he said, accusing Trump of starting a trade “war.”
“You’re at war when you get attacked. We got attacked,” Carney added.
Canada’s new tariffs will target US steel and dairy products and take effect on September 8.
Carney said further details would be announced next week.
Trump had earlier said the two countries should be able to reach an agreement, pointing to his “good relationship” with Carney.
However, US Trade Representative Jamieson Greer said Washington had offered significant tariff reductions on steel, aluminium, automobiles and lumber in exchange for concessions from Canada.
A senior US official said the negotiations were direct but not hostile, adding that no further meetings had been scheduled.
Canada has been seeking relief from US tariffs on automobiles, steel and aluminium, which Ottawa says have hurt its economy, caused job losses and strained relations between the two countries.
The latest dispute comes as both countries prepare to renegotiate the North American trade agreement, USMCA.
Relations have also been strained by Trump’s repeated comments about making Canada the 51st US state.
Carney said Canada must reduce its dependence on the United States, which currently accounts for about 70 percent of Canadian exports.
“We’ve been under no illusions. We recognized from the start that America has changed,” Carney told reporters on Saturday.
Trade lawyer Ryan Majerus said both countries would face “significant pressure” to find a way out of the dispute.
