Carney halts US trade talks, hits back with tariffs on $20 billion
Why it matters: Canada sends about 70% of its exports to the US, raising the risk of job losses, factory shutdowns and higher costs.
Prime Minister Mark Carney has suspended trade talks with President Donald Trump and moved ahead with dollar-for-dollar counter-tariffs on US$20 billion of US goods, escalating the trade fight between Canada and the United States. Carney said Washington made last-minute changes to a tentative deal, including on auto tariffs, French-language requirements and limits on Canada pursuing trade agreements with other countries. Ottawa also rolled out a C$7.5 billion support package as businesses brace for pressure from tariffs on both sides of the border. Polling cited by the reports showed broad public backing for Carney's tougher stance, though economists warned that support could fade if unemployment rises, factories shut and incomes fall.