US imposes 50% tariffs on $20 billion worth of Canadian products, and Canada says it will retaliate

After last-ditch negotiations failed to resolve the latest strain in already tense relations between the historic allies, WASHINGTON (AP) – The United States imposed 50% tariffs on $20 billion worth of Canadian products early Saturday, and Canada immediately remarked it would retaliate.

Key points

• "Canada will match those tariffs dollar for dollar to protect our workers and businesses, " Canadian Prime Minister Mark Carney remarked in an official note.
• President Donald Trump's import taxes will hit regarding 5% of what Canada ships to the United States every year, including products ranging from hockey sticks to tongue depressors.
• Canada sought concessions on Trump tariffs on steel, aluminum, autos and lumber that the United States was unwilling to provide, a senior Trump administration official remarked to journalists.

What happened

"Canada will match those tariffs dollar for dollar to protect our workers and businesses, " Canadian Prime Minister Mark Carney remarked in an official note. The retaliation escalates the trade conflict and calls into question the future of a North American trade pact between the United States, Canada and Mexico that is crucial to industry in all three countries.

The bottom line

For now, US imposes 50% tariffs on $20 billion worth of Canadian products, and remains the part of the story worth watching, and further updates are likely as more details are confirmed.