Canada vows ‘dollar for dollar’ response as US puts 50% tariffs on some goods

Collapse of trade talks could lead to job losses, but biggest impact on traditional allies is expected to be political

The trade row is the biggest rupture in recent relations between Washington and one of its closest allies and trading partners as Donald Trump's bellicose foreign policy angered officials in Ottawa.

The two sides appeared close to a deal on Friday to lower tariffs on steel, aluminium and cars, but the deal was scuttled at the last minute. The two sides blamed each other for the collapse.