Economic relations between the US and Canada have reached a critical point of escalation after Ottawa promised to retaliate against new US punitive tariffs on a strict dollar-for-dollar basis.
The trade conflict flared up in full force after the White House officially imposed 50% tariffs on about $20 billion worth of Canadian goods.
Canadian Prime Minister Mark Carney has decided to end the ongoing three-day trade talks in Washington and ordered the delegation to return to the country immediately, German media Deutsche Welle reported. Canadian government officials described the last-minute changes proposed by the US as “unfair and market-based”. The US Trade Representative However, Jamieson Greer expressed the opposite position, saying that Ottawa had missed a historic opportunity for economic partnership.
The new US tariffs will affect about 5% of total Canadian exports to the US, with the list including a variety of products - from cheese and beer to specific industrial goods. As BBC News reports, Canadian provinces have expressed full support for the imposition of reciprocal measures, despite business concerns that the trade war will raise prices for end consumers in both countries.