KATHMANDU: Canadian Prime Minister Mark Carney has described the latest US tariffs on Canadian goods as a “miscalculation” aimed at hurting and dividing Canada after trade negotiations between the two countries collapsed.

Addressing Canadians, Carney said the United States had demanded too much while offering too little, pushing the two countries into a trade war following Washington’s decision to impose additional duties on Canadian products.

Canada will respond by matching the US tariffs “dollar-for-dollar” from September 8, Carney announced. The retaliatory measures are expected to target products including steel, dairy goods, appliances and electronics.

The latest breakdown has strained the long-standing and deeply integrated trade relationship between the two neighboring countries. The two sides had appeared close to reaching an agreement earlier this week, but talks collapsed after both countries accused each other of making changes at the final stage.

Following the failed negotiations, Washington imposed new 50% tariffs on a range of Canadian products, in addition to existing duties on Canadian steel, aluminum, automobiles and lumber. The new tariffs affect around $20 billion worth of Canadian imports, including wine, dairy products, cement, clothing and hockey equipment.

Carney said Canada was taking retaliatory action reluctantly to protect its economic interests, with further details expected to be announced in the coming days.