Canada, US and tit-for-tat tariffs: How will they impact their economies?

Canadian Prime Minister Mark Carney has announced retaliatory tariffs that will “match Washington’s new tariffs dollar for dollar” after days of intense negotiations between the United States and Canada broke down.The tit-for-tat response came after US President Donald Trump imposed a 50 percent levy on $20bn of Canadian goods, or 5.5 percent of its exports, disrupting the long history of stable relations between the two North American neighbours.Recommended Stories list of 4 itemslist 1 of 4How will Trump’s tariffs affect Canada’s economy?list 2 of 4Carney: Canada will enact retaliatory US tariffs starting September 8list 3 of 4Canada to match US tariffs “dollar for dollar,” PM Carney sayslist 4 of 4Canada to hit US with retaliatory tariffs as trade war escalatesend of listTrump first imposed tariffs on key imports from Canada early in his second term last year. The two countries have scuffled since with Trump periodically making new tariff threats.So what prompted this latest escalation, and how will it impact the two Western economies?How did talks break down?In Ottawa on Saturday, Carney said the talks with the US broke down late the day before after Trump set conditions that w...