The United States and Canada fell deeper into a trade war on Saturday after negotiations collapsed in Washington, with each side imposing new tariffs and blaming the other for the breakdown. The United States imposed 50% tariffs on 20 billion dollars worth of Canadian goods, affecting about 5% of Canada’s annual exports to the United States. Canada set September 8 as the start of its retaliatory penalties and plans targeted tariff protections for dairy, steel, appliance, pulp and paper, and electronics sectors. Prime Minister Mark Carney accused Washington of using economic integration as a weapon and said America has changed, adding that Canada would not return to its old relationship with the United States. The two countries exchanged 880 billion dollars worth of goods and services last year, with nearly 72% of Canada’s goods exports going to the United States.
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