Canada hits back with 50% tariffs on US goods after trade talks collapse

Canada has announced retaliatory tariffs of up to 50% on nearly C$28bn ($20bn) worth of US goods, escalating a trade war after talks collapsed last week. The levies, targeting steel, furniture, and other products, take effect on 8 September. The move responds to 50% US tariffs on Canadian goods imposed by President Donald Trump after Friday's failed negotiations. Finance Minister François-Philippe Champagne called the response "proportionate" and "strategic," adding C$7.5bn in support for affected businesses and workers. The White House accused Canada of "unreasonable demands," while Trump threatened further auto tariffs and suggested renaming Lake Ontario. Both sides expressed hopes for resumed talks, though the dispute raises questions about the USMCA trade pact's future.