Canada and US Trade War: Carney Vows Dollar-for-Dollar Tariffs
Canada and the US have entered a trade war after negotiations collapsed Friday, with President Trump announcing a 50% tariff on Canadian goods Monday. Prime Minister Mark Carney pledged to match tariffs "dollar for dollar" starting September 8. Carney stated Canada was "pragmatic, patient, and perseverant" but couldn't accept US terms, accusing Washington of demanding too much while offering too little. Both sides blame each other for the breakdown, with Trump claiming Canada wants US benefits without statehood. Carney faces a significant political test convincing Canadians the economic cost is worthwhile. Polls show 56% support a firm stance, while existing boycotts have already cost the US $2.35 billion in tourism revenue. Provincial leaders are showing a united front, though the 50% tariffs don't take effect until next year, leaving room for further negotiation.