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

A fresh wave of US tariffs on a wide array of Canadian goods came into effect on Saturday after a last-minute breakdown in trade talks.

Announcing the suspension of negotiations shortly before the Friday night deadline, Canadian Prime Minister Mark Carney said he would impose reciprocal tariffs on US goods "dollar for dollar".

Carney said "last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal".

Trade negotiators had been engaged in intense talks since July, after President Donald Trump threatened to impose a 50% levy on nearly $20bn (C$28bn; £14bn) of Canadian imports by 19 August.

Trump had temporarily paused those tariffs earlier in the week, saying the two sides were close to signing a trade deal that was "very good" for both countries.

But minutes before the deadline for a deal, Carney said that while "important progress" had been made in the talks it was "not enough to meet our objectives for Canadians".

"As a result, this evening, I have decided to suspend trade negotiations with the US and have directed negotiators to return to Ottawa," he said.

"Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal."