The latest escalation in the trade rift between Canada and the United States underscores growing strains in US relations with its traditional allies under the "America First" policy, experts said, as Ottawa vowed retaliatory tariffs on US goods after Washington announced 50-percent tariffs on imports from Canada.
Experts said the development casts fresh doubts on the future of the US-Mexico-Canada Agreement, the cornerstone of North American trade, as US protectionist measures and trade disputes increasingly challenge the region's deeply integrated economic ties.
Canadian Prime Minister Mark Carney announced retaliatory tariffs on US goods on Saturday after walking away from what he called a "bad deal", as trade tensions between the longtime allies deepened following the collapse of last-ditch negotiations.
Negotiations between the neighboring countries broke down on Friday in Washington, DC, putting into force new 50-percent US tariffs affecting about $20 billion worth of goods, or 5.5 percent of Canada's exports to the US.
New Canadian tariffs, which are set to take effect on Sept 8, will notably target the US steel and dairy industries. More details will be revealed next week, Carney said.
