Canada tariffs on cars to double to 50% as Trump escalates trade war

It comes as the trade talks collapsed

Why the Canada tariffs row escalated

Late on Friday, Canada walked away from the negotiating table, moments before a US deadline that would have added a 50% levy to nearly $20bn (C$28bn; £14bn) of Canadian imports.

This turn was an abrupt one, as days earlier both governments had sounded optimistic that a deal was within reach.

According to Canadian officials, the US tabled “unacceptable” eleventh-hour demands, including a clause limiting which countries Canada could sign its own trade deals with.

On the other hand, the US officials insist it was Canada that moved the goalposts.

Prime Minister Mark Carney called the latest threat unsurprising and accused Trump of wanting to destroy Canada’s auto industry, saying talks can resume only if the US turns up with the “right attitude”.

The brinkmanship is familiar from Trump’s recent high-stakes dealmaking, which has leaned heavily on maximum pressure.

Canadian government leaders in business, finance and economic development will set out the country’s response at a news conference at 09:00 ET (14:00 BST) on Tuesday, promising to “protect and support Canadian workers and businesses during these challenging times”.