U.S. imposes 50% tariffs on $20 billion worth of Canadian products. Canada will impose retaliatory tariffs

WASHINGTON (AP) — The United States imposed 50% tariffs on $20 billion worth of Canadian products early Saturday, and Canada said it would retaliate beginning Sept. 8 after last-ditch negotiations failed to resolve the latest strain in relations between the historic allies.

President Donald Trump's import taxes will hit about 5% of what Canada ships to the United States every year, including products ranging from hockey sticks to tongue depressors.

He disclosed that Canada had been willing to drop remaining retaliatory tariffs on steel, aluminum and autos if the United States substantially lowered its own, and to encourage provinces to restore U.S. alcohol sales.

But he said Washington's final demands went too far, saying, "They asked too much and offered too little," Carney said.

The retaliation also calls into question the future of a North American trade agreement covering the United States, Canada and Mexico that is crucial to industry in all three countries.