Trade war reignites as Canada vows to match Trump’s 50% tariffs ‘dollar for dollar’ after talks fail at last minute

CANADA has vowed to match Donald Trump’s 50 per cent tariffs as a huge trade war reignites after talks fell through at the last minute. The US slapped the huge taxes on some £14.6bn worth of goods from its northern neighbour today after the allies failed to reach a trade deal. Canada has vowed to match Donald Trump’s 50 per cent tariffs as a huge trade war reignites between the allies Credit: AP Canadian Prime Minister Mark Carney said he would fight Trump’s new tariffs ‘dollar for dollar’ Credit: Reuters Trump’s new tariffs came into force at midnight on Saturday. Both sides accused each other of derailing days of last-ditch talks. Sign up for The Sun newsletter Thank you! Canadian Prime Minister Mark Carney declared he had pulled out of talks and would fight Trump’s new tariffs “dollar for dollar”. He said: “I have decided to suspend trade negotiations with the U.S. and have directed Canada‘s negotiators to return to Ottawa.” “They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute.” Canada’s retaliation escalates the trade war brewing between the two allies. PM Carney blamed final hour switch-ups from the US for the collapse of negotiations. The former Governor of the Bank of England said: “However, last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal.” Most read in The Sun Trump’s new tariffs came into force at midnight on Saturday Credit: AFP PM Carney blamed final hour switch-ups from the US for the collapse of negotiations Credit: Reuters Just hours earlier a deal had seemed close – an agreement could have brought American booze back to Canadian liquor stores as well as lowering tariffs on steel, aluminium and autos. US Trade Representative Jamieson Greer said: “Tonight, Canada declined to finalise the trade deal under the terms agreed earlier this week.” He slammed Carney, saying: “This is a missed opportunity for Canada to partner with the United States, which is the fastest-growing economy in the G7.” Three days of talks between Canada’s minister for trade with the US, Dominic LeBlanc and Greer in Washington left both sides leaving empty-handed. Trump had extended a deadline for talks so that negotiators could have one last chance to hash out a deal. But the deal fell apart because Canada wanted concessions, especially on steel, aluminium, autos and softwood lumber, a senior Trump administration official said, adding that no further talks were planned. Canada and the US traded a whopping $880 billion worth of goods and services last year. Nearly 72 per cent of Canada’s goods exports last year were sold to its southern neighbour. These latest tariffs apply to a swathe of goods making up around five per cent of Canada’s exports to the US, including wooden ice hockey sticks. Although the taxes on their own aren’t a huge economic game changer for Canada, they will likely complicate efforts to renew the US-Mexico-Canada free trade agreement. It comes after the US president threatened to slap a whole raft of duties on a range of Canadian imports including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment. Comment now