Washington DC [US], August 24 (ANI): The US-Canada trade war has escalated sharply, with US President Donald Trump on Monday announcing that tariffs on Canadian cars, trucks, automotive parts and steel imports will be raised to 50 per cent from January 2027, following the collapse of trade negotiations between Washington and Ottawa last week.Trump announced in a post on Truth Social, accusing Canada of imposing high tariffs on American farmers and agricultural products and warning that companies manufacturing in the United States would face zero tariffs.”Canada has been ripping off the United States of America for years. Their ridiculously high tariffs on our Farmers and farm products has made life impossible for these great American Patriots, and has long created a 60 Billion Dollar Deficit between our two Countries. Not sustainable, and NOT ANYMORE! On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%. Build in the U.S. and there are ZERO TARIFFS. Canada will be treated like a State no longer!” Trump said in his post.The US President further accused Canada of being among the most difficult countries to deal with in trade, arguing that Ottawa depends heavily on the American market while claiming the US does not similarly rely on Canada.”On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US! They do 95% of their business with the U.S., with us, the exact opposite! Thank you for your attention to this matter!” he added.The announcement came after trade negotiations between Washington and Ottawa broke down, with Canadian Prime Minister Mark Carney describing the US’ last-minute proposed terms as “unfair” and “uneconomic”. Canada has said it will respond with retaliatory tariffs on US goods.Carney said he had instructed Canadian negotiators to return to Ottawa after more than a year of discussions with Washington, arguing that Canada could not accept the US offer.”Late last evening I instructed our negotiators to return to Ottawa. We cannot accept what the U.S. has offered, and we will not give what they have asked,” Carney said on Saturday.He added that Canada would match the new US tariffs dollar-for-dollar to protect Canadian workers, farmers, families and businesses.”Canada will match the U.S.’ new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses. We take this step confident that it is in the best interests of Canada,” Carney added.Canada’s retaliatory measures are expected to take effect on September 8, with Ottawa targeting a range of US products, including steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.The latest escalation follows the United States imposing 50 per cent tariffs on roughly USD 20 billion worth of Canadian imports after the trade talks failed.The measures affect five per cent of Canada’s exports to the United States.Carney said Canada’s negotiators had made progress during the discussions but that Washington’s final changes undermined the possibility of reaching an agreement.”Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal,” he said.The Canadian Prime Minister said Ottawa would also introduce additional measures to support workers and businesses.”We have recognised from the beginning that America has changed, and that we will not return to our old relationship,” Carney said.Carney also said Canada was working to strengthen its domestic economy and diversify its export markets. He said the country was advancing nearly USD 500 billion in major infrastructure projects and seeking new export markets for Canadian businesses.”Our existing free trade deals already provide Canada with preferential access to 1.5 billion consumers, and we are on track to double that market access by the end of this year,” he said.The United States Trade Representative, meanwhile, criticised Canada’s decision to suspend negotiations, calling it a missed opportunity and accusing Ottawa of withdrawing commitments and introducing new demands during the talks.The US said it had offered Canada sector-specific relief involving steel, aluminium, automobiles and lumber, along with cooperation on export controls, digital trade, critical minerals and supply chain coordination.”Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walkbacks of other commitments by Canada have upended the careful balance reached in the past days,” the US Trade Representative said.Trump has earlier slammed Ottawa, referring to Canada as an American state, following the suspension of trade talks and Carney calling the US terms “uneconomic, unfair, and undermining the net benefits” for the country.In a separate post on Truth Social, making them his first remarks since Carney announced that Ottawa will match the new US tariffs “dollar-for-dollar”, Trump argued that Canada has charged massive tariffs on American farmers.”Canada wants the benefits of being a State, without being one!!! They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!! President DJT,” the post read.The latest dispute adds to already strained relations between Washington and Ottawa, with Trump repeatedly criticising Canada’s trade policies and reviving his description of Canada as a potential US state.The new tariff announcement further raises uncertainty for industries deeply integrated across the US-Canada border. (ANI)(This content is sourced from a syndicated feed and is published as received. The Tribune assumes no responsibility or liability for its accuracy, completeness, or content.)