Canada promises to match US tariffs dollar for dollar.

Trade negotiations between Washington and Ottawa broke down at midnight on Friday, following a three-day extension of talks. Canadian Prime Minister Mark Carney announced that Canada would align its tariffs with those imposed by the United States.

Mark Carney didn't mince words. After the failure of trade negotiations with Washington, the Canadian Prime Minister promised to retaliate against the 50% American tariffs "dollar for dollar." The two countries failed to reach an agreement before the midnight deadline on Friday, despite a three-day extension of the talks.

In a statement, Carney pointed to American responsibility for the failure. Canadian negotiators had worked "in good faith," but "last-minute changes to the terms proposed by the United States were unfair, uneconomical, and called into question the reliability of any agreement," he said.

The Canadian prime minister called the changes "unfair," accusing Washington of introducing new conditions at the last minute, making any compromise impossible. The failure of these negotiations marks a further escalation in trade tensions between the two North American neighbors, whose bilateral trade amounts to hundreds of billions of dollars annually.