50% US TARIFFS HIT $20BN OF CANADIAN GOODS

🚨 50% tariffs now sit on $20bn of Canadian goods, including wine, furniture, dairy, cement, clothing, fishing rods and hockey sticks.

Guardian Business reports the US-Canada trade talks collapsed on Friday. The two sides had appeared close to an agreement to lower tariffs on steel, aluminium and cars. It fell apart at the last minute.

Prime minister Mark Carney said Canada was "walking away from a bad deal" and would match Washington's new tariffs dollar for dollar.

The new US levies cover around 5% of Canada's exports to the US, and land on top of existing tariffs on cars, aluminium, steel and lumber.

Canada's response starts 8 September: tariffs on US steel, electronics, dairy, appliances, agricultural equipment, pulp and paper and other goods.

📉 Markets moved fast. The Canadian dollar dipped 0.2% to C$1.3798 per US dollar, retreating from a three-month high built on deal hopes. It weakened against every other G10 currency.

Asian equities fell too. Japan's Nikkei dropped nearly 0.7%, Hong Kong's Hang Seng 1.9%, South Korea's Kospi 3.2%.

Brent crude lost 1.6% to $92.81 a barrel as traders waited on details of threatened US sanctions on Iran.

Bloomberg reported overnight that Canada sees little chance of talks resuming before the US midterm elections.

Which side blinks first on tariffs?

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