The Canadian dollar fell 0.2% to C$1.3798 per US dollar after the US imposed 50% tariffs on $20bn of Canadian goods on Friday and trade negotiations broke down at the last minute. Prime Minister Mark Carney said Canada would "match Washington's new tariffs dollar for dollar", with retaliatory levies on US steel, electronics, dairy and other products to take effect on 8 September.

The new US tariffs cover goods including wine, furniture, dairy, cement, clothing and hockey sticks, affecting around 5% of Canada's exports to the US. President Donald Trump posted on social media that "Canada wants the benefits of being a State, without being one!!!" The breakdown prompted a broader market reaction, with the Canadian dollar weakening against all G10 currencies, Julia Kollewe reports for Guardian business.