Carney calls Trump's fresh tariffs a 'miscalculation' after trade talks collapse

Canada's Prime Minister Mark Carney has said a fresh wave of US tariffs on Canada is a "miscalculation" designed to "hurt and divide us", after trade talks broke down late on Friday.

Carney said he walked away from a deal because he was not prepared to "compromise Canada's sovereignty", adding he felt the country was being "attacked" by the US.

"They asked too much and they offered too little," Carney said in a speech to Canadians on Saturday morning.

The prime minister said that Canada will match US tariffs "dollar-for-dollar" from 8 September, including levies on steel, dairy, appliances and electronics. Donald Trump has yet to comment.

Both countries were optimistic of a deal earlier in the week, but talks collapsed on Friday night after both sides accused the other of making last-minute changes.

Now that talks have broken down, Canada has been hit with new 50% US tariffs on a range of Canadian goods, in addition to existing US tariffs on Canadian steel, aluminium, automobiles and lumber.

The prime minister said Canada was retaliating "reluctantly" to protect its interests. Details of the counter-measures will be released in the coming days, he said.

Carney's speech on Saturday was his first address to Canadians after he announced late on Friday night that a deal would not be reached, accusing the Americans of making "last-minute changes" that were "unfair" and "uneconomic".

US negotiators, meanwhile, accused Canada of making "new demands and walk backs" on terms which had been agreed earlier in the week.

On Saturday, US trade representative Jamieson Greer told Fox News there were no plans to resume talks.

He added that the US had been prepared to cut some of its tariffs on Canada as part of the deal that fell apart.

"They've always had the best deal, and they still would have an even better deal, but they didn't want that," said Greer.

Carney, however, said the US presented "unacceptable" terms that were too restrictive, including curbing Canada's ability to strike new trade deals with other countries.

The prime minister also rejected the assertion that Canada had made last-minute requests: "We clarified what was on offer and were continually disappointed by the answers."

The collapse comes after more than a year of on-again, off-again trade talks, which intensified in recent weeks after a US-imposed deadline to strike a deal or face further tariffs.

The two countries were also engaged in a mandatory review of an existing North American free trade agreement, known as USMCA, with Mexico.

The pact was signed by Trump during his first term to replace the 1994 North American Free Trade Agreement. It underpins $1.6tn (£1.2tn) in annual trilateral trade across Canada, the US and Mexico.

Earlier this summer, Canada and Mexico had formally requested for USMCA to be renewed for another 16 years. The US, however, declined to renew it in its current form.

Asked how Friday's trade talk collapse would impact the North American free trade pact, Carney said it was "certainly not good news".

Tariffs - a tax placed on imports from other countries - have been a key component of Trump's trade policy, with the US president arguing they will boost American manufacturing and create jobs at home.

Critics, however, say tariffs have raised prices for American consumers and have disrupted and damaged the global economy.