Canada abandons US trade talks, vowing retaliatory tariffs

Canada walked out of trade negotiations with the US just hours before 50% tariffs on Canadian exports were set to take effect, with Prime Minister Mark Carney vowing to respond with dollar-for-dollar tariffs starting 8 September. Carney described the last-minute US demands as 'uneconomic' and said they cast doubt on the reliability of any agreement. Canadian officials cited unresolved issues over autos, digital and cultural policy, as well as US attempts to veto Canada's trade alliances with other countries.