Canada hits back after U.S. trade talks break down

Canada imposed counter-tariffs after the U.S. introduced last-minute demands during trade talks that threatened its sovereignty, according to policy expert Drew Fagan. The U.S. demands included higher truck tariffs, restrictions on free trade deals with other nations, and control over Canadian content regulation. Fagan said Prime Minister Mark Carney had "no choice but to introduce counter-tariffs" after the U.S. broke its word despite painful concessions. Canada walked away from negotiations Friday, activating a 50 per cent tariff on roughly $28 billion worth of goods. Carney vowed to match Washington's tariffs dollar for dollar. U.S. President Donald Trump threatened to increase tariffs on Canadian auto, car parts and steel by 50 per cent on Jan. 1, 2027. Fagan warned escalation hurts Canada more than the U.S., noting the real strategic fight is with China, not Canada.