US-Canada Trade Collapse Triggers 50% Tariffs — SkimNews
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- Trump said Canada wanted "the benefits of being a state, without being one," repeating his 51st-state rhetoric and calling Canada "foolish" to think it could win a trade war.
- US imposed new 50% tariffs on a range of Canadian goods, covering about $20bn (£15bn; C$28bn) or 5% of imports, in addition to existing levies on steel, aluminium, automobiles and lumber.
- Mark Carney called the new tariffs a "miscalculation" and promised dollar-for-dollar Canadian retaliation from 8 September, including levies on steel, dairy, appliances and electronics.
- Jamieson Greer said there were no plans to resume talks, while Canada and the US traded accusations over new demands and walk backs; Carney objected to US restrictions on Canada's ability to strike other trade deals.
- USMCA remains under mandatory review after Canada and Mexico requested a 16-year renewal and the US declined to renew it in its current form; Carney said the talks' collapse was "certainly not good news" for the pact.
Why it matters: American consumers and Quebec workers are the clearest stakeholders named in the dispute: critics say tariffs raise US prices, while Quebec's premier warned jobs would likely be lost. The immediate material change is a 50% levy on $20bn—about 5%—of Canadian imports, plus Canada's scheduled dollar-for-dollar response from 8 September.
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