The US and Canada were negotiating regarding import and export tariffs, but these discussions collapsed on Friday, threatening to escalate into a trade war between long-time allies.
Each side accuses the other of failing the negotiations. As a result, the US intends to impose a 50 percent tariff on Canadian goods worth $20 billion. Canada plans to retaliate with its own tariffs on September 8.
Both countries are aware of their trade vulnerabilities. The US has targeted 5 percent of Canadian imports, ranging from hockey sticks to tongue pads. In response, Canada introduced tariff restrictions, mainly concerning steel products, and also mentioned dairy, home appliances, agricultural equipment, pulp and paper, and electronics sectors.
Canadian Prime Minister Carney stated that the US is using tariffs as a weapon against the Canadian economy, noting that Canada was 'attacked' by these tariffs, and added: 'You are at war when you are attacked.'
For his part, Trump's chief negotiator for Canada, Jamieson Greer, said in an interview with Fox & Friends Weekend: 'We said enough, and therefore we took countermeasures. Our interest is in protecting American workers and American supply chains.'
Carney did not give up, stating that 'they [the US] demanded too much and offered too little,' and also emphasized that 'America has changed' and their relationship will never be the same, because 'we will not return to our old relationship.'