The United States imposed 50 per cent tariffs on $20 billion worth of Canadian products on early Saturday, and Canada immediately said it would retaliate, after last-ditch negotiations failed to resolve the latest strain in already tense relations between the two historic allies.

US President Donald Trump’s import taxes will hit about 5 per cent of what Canada ships to the US every year, including products ranging from hockey sticks to tongue depressors. “Canada will match those tariffs dollar for dollar to protect our workers and businesses,” said the Canadian Prime Minister Mark Carney. Canada will impose retaliatory tariffs on US goods beginning September 8.