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Guests The U.S.-Canada trade war is deepening after talks collapsed without a deal on Friday. Canadian Prime Minister Mark Carney accused the Trump administration of issuing demands that would compromise Canada’s sovereignty and undermine key industries. On Saturday, the United States slapped 50% tariffs on around $20 billion worth of imports from Canada, and Carney announced retaliatory tariffs on $20 billion of U.S. products set to go into effect on September 8.

WATCH LIVE: Canada announces retaliatory tariffs against the U.S. Canada struck back at the United States on Tuesday with retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment, as the trade war between the once-friendly neighbors escalated sharply.

Within hours, Trump threatened to impose a second wave of 50% tariffs on Canadian autos and steel.

WASHINGTON — Canada is poised to roll out a batch of retaliatory tariffs in response to President Trump’s 50% duty on $20 billion worth of goods after trade talks between the two North American neighbors broke down last week.

The action marks an escalation in the growing trade war between the two countries, after talks collapsed last week and Trump imposed 50% tariffs Aug. 22 on about 5% of Canadian imports. The Canadian duties take effect Sept. 8 and range from 15% to 50% on 700 products.

On Monday, Trump threatened to hike US tariffs on Canadian automobiles to 50% as of 1 January. Prime Minister Mark Carney responded by accusing Trump of wanting to "destroy" Canadian industries including the automobile manufacturing and steel and aluminum sectors.

Tuesday’s announcement came just days after the Trump administration’s 50% tariffs on roughly $20 billion of Canadian goods, ranging from honey to hockey sticks, took effect. That represents just 5% of the value of goods Canada sent to the U.S. last year, but the punishing rate comes on top of a series of tariffs Trump has imposed on the country during his second term in office. More threats of escalation have piled up in the meantime. As a result, businesses—and, by extension, households—on both sides of the border could soon feel the strain of even higher prices.

The move comes days after trade talks broke down between the U.S. and Canada. President Donald Trump on Monday said in a social media post that he will ratchet up tariffs on Canada-made cars and auto parts in January, escalating a trade war between the United States and Canada. This is a developing story. Please check back for updates.

Canada announces ‘dollar for dollar, rate for rate’ retaliatory tariffs on US Canada announced retaliatory tariffs on hundreds of American products as high as 50 percent Tuesday, just days after the collapse of negotiations between the two countries. Canadian Finance Minister Francois-Philippe Champage said Canada will match the U.S.’s tariffs “dollar for dollar, rate for rate.” The tariffs would take effect on Sept. 8. He said the…

Carney instructed his negotiators to walk away from trade talks last week. Tariffs on an array of Canadian products took effect over the weekend, affecting around 5% of Canada’s exports to the US, and Canada said it will retaliate in early September.

Canada announces retaliatory tariffs on $20 billion worth of US goods, unveils support measures - Reuters Canada announces retaliatory tariffs on $20 billion worth of US goods, unveils support measures  Reuters

Canada Fires Back in Trade War Against Trump With Up to 50% Tariffs Canada said the higher levies, on items from aluminum foil to dishwashers to fish, would help protect workers, producers and manufacturers harmed by new Trump tariffs.