Canada Prepares Tariff Retaliation as Trade Talks With US Break Down
Trade negotiations between the United States and Canada have broken down, leaving a range of Canadian products facing higher tariffs. Canadian Prime Minister Mark Carney has warned that Ottawa will respond with matching measures, saying Canada will retaliate “dollar for dollar” against the new US tariffs.
The dispute adds fresh pressure to economic relations between the two North American neighbours, with businesses on both sides facing the prospect of higher costs and further disruption. The latest developments come as the two countries continue to navigate an increasingly tense trade relationship under US President Donald Trump.
Meanwhile, the Australian dollar has recorded its eighth consecutive week of gains against the US dollar. However, economists are examining whether the Aussie is genuinely strengthening or whether much of the movement reflects weakness in the US currency.
ABC Business Daily presenters Carrington Clarke and Michael Janda discussed the trade dispute and what is driving the currency shift.
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