Canada’s PM hits back with new US tariffs after trade talks fail

Canadian Prime Minister Mark Carney said on Saturday he would slap retaliatory tariffs on the United States after walking away from a “bad deal” on trade, deepening the rift between the long-time allies.

Negotiations between the neighbouring countries broke down on Friday in Washington, allowing new 50 per cent US tariffs impacting some US$20 billion worth of goods, or 5.5 per cent of Canadian exports to the United States, to come into force.

Impacted products range from hockey sticks to cement.

US President Donald Trump had said Washington “should be able to have a deal with Canada”, citing his “good relationship” with Carney.

But on Saturday, the Canadian prime minister said Trump had set conditions that were ultimately unacceptable.

“We believed earlier this week that we were moving towards a mutually beneficial agreement,” Carney said in the Canadian capital, Ottawa.