Canada to retaliate against new US tariffs after talks fail

Canada will announce retaliatory measures Tuesday against new US tariffs after talks with Washington failed, escalating the trade war between the longtime allies. Prime Minister Mark Carney rejected what he called a "bad deal" and confirmed counter-tariffs starting September 8. The new US tariffs of 50% on certain Canadian products took effect Saturday. Trump also threatened to double tariffs on Canadian-made automobiles to 50% next year, up from the current 25% on non-US content. Canada's response will target US steel, dairy, agricultural equipment, paper, and electronics industries. Carney said Washington imposed unacceptable conditions threatening Canada's auto, steel, and aluminum sectors, plus Quebec's language and culture. Vice President JD Vance blamed Canada's "unreasonable last-minute demands." The US is Canada's largest trading partner, receiving about 70% of its exports.