Canada's retaliatory tariffs take effect as US trade talks stall

Canada's retaliatory tariffs on U.S. goods took effect after midnight on Tuesday, intensifying an 18-month-old trade war and spurring Prime Minister Mark Carney to urge a further shift away from the country's biggest trading partner.



The Canadian levies follow 50% tariffs the United States imposed on some $20 billion of Canadian goods last month, after several rounds of negotiations collapsed. The breakdown has widened a rift between the longtime allies, both of whom have blamed the other for the failed talks.



"We have everything we need to pivot and prosper," Carney said on Tuesday in a video posted on YouTube after the tariffs came into effect.



"That pivot will come at a cost. There's always a cost to action. But it doesn't come close to the cost of standing still," he said.