WASHINGTON, United States: The Trump administration on Sunday warned that Canada would be “foolish” to think it could win a trade war with the United States, predicting a “devastating” impact on its northern neighbor. Negotiations between Washington and Ottawa broke down late Friday, putting into force new 50-percent US tariffs impacting about $20 billion worth of Canadian goods, or 5.5 percent of Canadian exports to the United States. Canada in retaliation said it would match US tariffs, with new levies notably targeting the US steel and dairy industries to take effect on September 8.

Canadian Prime Minister Mark Carney vows to retaliate, says his country recognized that 'America has changed' and that the two countries would 'not return to our old relationship'

“Canada will match those tariffs dollar for dollar to protect our workers and businesses,” Prime Minister Mark Carney said in a statement.