The United States and Canada failed to reach a trade deal on Friday, and the White House said that it would impose 50 percent tariffs on certain imports from Canada.
Meanwhile, Canada's Prime Minister Mark Carney said that Canada would retaliate against the new tariffs.
Carney said Canada has suspended trade negotiations with the United States and recalled its negotiators to Ottawa, following new tariff threats from Washington.
The decision was made after last-minute changes proposed by the U.S. side were deemed "unfair, uneconomic, and called into question the reliability of any deal," he said in a statement.
As the U.S. intends to impose a 50-percent tariff on 20 billion U.S. dollars worth of Canadian goods starting at midnight, Canada will match those tariffs "dollar for dollar" to protect its workers and businesses, Carney said.
U.S., Canada fail to reach trade deal
The U.S. military options against Iran remain open despite its shift toward increasing economic pressure on Iran, U.S. President Donald Trump said Friday at Joint Base Andrews in Maryland.
Asked whether the economic strategy indicated that U.S. military options in the region were limited, Trump said, "No, not at all. It just means that we're seeing what happens."
Trump said the United States has "total control" over the Strait of Hormuz and surrounding areas.
He said Iran wants to reach an agreement with the United States but has yet to offer acceptable terms.
Trump announced on Wednesday that the United States will impose "unprecedented" economic warfare and isolation on Iran, after months without a decisive military outcome or diplomatic progress.
Calling it "an Economic D-Day," Trump said in a post on Truth Social that the move will be "the most crushing economic operation ever taken against any country."
Military options against Iran 'not at all' limited as US shifts to economic warfare: Trump
