Canada`s Prime Minister Mark Carney has announced retaliatory tariffs on the United States after Washington imposed a 50% levy on $20bn worth of Canadian goods, writes Al Jazeera.

Carney, speaking in Ottawa on Saturday, said the new Canadian tariffs would target US steel, dairy and electronics industries, among others, and take effect on September 8: "Canada will match Washington’s new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses".

The announcement came after days of intense negotiations broke down late on Friday, worsening a delicate relationship between the longtime trade partners and allies.

US President Donald Trump`s new tariffs hit sectors including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment, and cover some $20bn worth of goods, or 5.5% of Canadian exports to the US. Trump responded to Carney’s announcement, saying on Truth Social, "Canada wants the benefits of being a State, without being one!!!" He claimed Canada has also charged US farmers "massive amounts" of tariffs for years, and added, "No more!!!"

Carney is one of the few global leaders to retaliate against US tariffs and has pledged to forge new trade and military alliances, despite Canada’s dependence on the US for nearly 70 percent of its exports.