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Canada has suspended trade negotiations with the United States after talks broke down, with Prime Minister Mark Carney warning that Ottawa will respond to new US tariffs with dollar-for-dollar measures.

The decision came shortly before a deadline for reaching a deal, following weeks of negotiations aimed at easing tensions between the two major trading partners.

Mr Carney said significant progress had been made, but it was not enough to meet Canada’s objectives. He criticised last-minute changes to the US proposals, describing them as unfair and economically damaging.

Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal,” he said.

The breakdown means a new wave of US tariffs will now affect a range of Canadian products. The 50% levies apply to about 5% of Canadian exports, including wine, dairy products, cement, clothing and hockey equipment.

The new tariffs come on top of existing US duties on Canadian steel, aluminium, cars and lumber.

Canada sends about 70% of its exports to the US, making the country particularly vulnerable to a prolonged trade dispute.

Mr Carney said Canada would impose reciprocal tariffs on American goods, matching the value of the US measures “dollar for dollar”.

The announcement marks a sharp change in tone after officials from both countries had expressed optimism earlier in the week that a trade agreement was close.

US Trade Representative Jamieson Greer accused Canada of backing away from commitments reached during negotiations.

Tonight, Canada declined to finalise the trade deal under the terms agreed earlier this week,” he said.

The negotiations had reportedly included discussions over reducing US tariffs on Canadian steel and aluminium from 50% to 25%, while tariffs on Canadian vehicles could have fallen from 25% to 15%.

In return, the US had sought concessions from Canada, including greater access for American dairy products and the removal of restrictions on US alcohol sales in Canadian provinces.

Canadian businesses have warned that the tariffs could cause significant economic damage.

The Canadian Chamber of Commerce described the new measures as a “body blow to North American competitiveness”, warning that smaller exporters could struggle to maintain orders, payrolls and jobs.

Economists have estimated that Canada could lose about 90,000 jobs if the tariffs remain in place, while financial analysts have projected that the measures could reduce Canada’s gross domestic product by between 0.3% and 0.6%.

Ontario Premier Doug Ford backed the federal government’s response, calling for “tariff for tariff, dollar for dollar”.

The latest dispute adds to growing tensions between the two countries since US President Donald Trump returned to office and introduced a broad programme of tariffs.

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The murder trial of Duane “Keffe D” Davis, who is accused of orchestrating the 1996 killing of legendary rapper Tupac Shakur, has taken an emotional turn after a former associate of Death Row Records co-founder Suge Knight appeared reluctant to provide testimony that could further implicate Davis.

James McDonald, a former associate of Knight and a former security figure at Club 662 in Las Vegas, was called to testify during the trial. However, from the beginning of his testimony, McDonald made it clear that he was uncomfortable discussing events from his past and did not want his evidence to contribute to Davis being sent to prison.

McDonald described himself as a hostile witness and told attorneys that he had only appeared in court because he had been subpoenaed. He indicated that he had moved on from the lifestyle he lived decades ago and was reluctant to revisit events connected to the violence and rivalries of the 1990s.

During questioning, McDonald became increasingly frustrated when attorneys asked him about tensions between different factions in Compton following the shooting of Tupac. He repeatedly declined to answer some questions, saying that providing certain information could hurt Davis.

At one point, McDonald directly addressed Davis in court and said he did not want to send him to prison, despite acknowledging that the two men did not like each other.

The exchange highlighted the difficulty prosecutors face in presenting evidence about a case that dates back nearly three decades. Several people who were connected to the events surrounding Tupac’s death have been reluctant to discuss what they knew, leaving investigators and prosecutors to rely on available testimony and other evidence.

McDonald also told the court that he had changed his life. He said he was now focused on raising his grandchildren and teaching them not to follow the lifestyle he had previously lived.

The witness acknowledged that he was aware of events and tensions that took place in the aftermath of Tupac’s shooting, but he maintained that he did not want to reopen old conflicts.

McDonald was also questioned about the relationship between Death Row Records figures and members of rival groups. He described the atmosphere in Compton after Tupac was shot as tense but indicated that the conflict was primarily connected to individuals rather than something he personally wanted to continue discussing.

He further rejected suggestions that former Death Row security chief Reggie Wright Jr. had coordinated Tupac’s killing, describing such a possibility as impossible. McDonald said he had known Wright for many years and did not believe he was responsible for the rapper’s death.

McDonald also confirmed that he was not present when Tupac was shot in Las Vegas on September 7, 1996. He said he learned about the shooting afterward and recalled that people initially believed Tupac might survive.

The testimony comes as prosecutors attempt to establish their case against Davis, who has pleaded not guilty to the charge. Prosecutors allege that Davis played a role in organising the shooting following an earlier confrontation involving his nephew, Orlando Anderson.

Davis has previously acknowledged being present in the vehicle from which the shooting was carried out, but his defence has argued that statements he made about the incident were not reliable and should not be treated as an admission of guilt.

Tupac was shot in a drive-by attack in Las Vegas in September 1996 and died several days later. His death became one of the most enduring mysteries in music history, with the investigation remaining unresolved for decades.

Davis was eventually arrested and charged in connection with the case years later. His trial has now brought renewed attention to the circumstances surrounding Tupac’s death and the people who were connected to the events at the time.

McDonald’s testimony demonstrates the challenges involved in revisiting a case that has remained unresolved for almost 30 years. His reluctance to provide certain answers also reflects the complicated relationships and history surrounding the people involved.

The trial remains ongoing, and the allegations against Davis have not been established as fact. The court will ultimately determine whether the prosecution has presented sufficient evidence to prove the charge against him.

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A ship hit by an unknown projectile while leaving the Strait of Hormuz has suffered damage to its engine room, with a crew member reported as a casualty, maritime authorities said on Tuesday.

The United Kingdom Maritime Trade Operations (UKMTO) said the incident occurred as the vessel was transiting outbound through the strategic waterway off the coast of Oman.

The vessel’s engine room was damaged in the attack, while the Omani coastguard moved to assist the remaining crew members. No environmental impact has been reported.

The identity of the vessel, the type of projectile used and the group responsible for the attack have not been established.

According to report, investigations are ongoing.

UKMTO advised commercial vessels operating in the area to exercise caution and report any suspicious activity.

The incident comes amid heightened tensions between the United States and Iran and a severe disruption to commercial shipping through the Strait of Hormuz.

Shipping data showed only six commodity vessels crossed the waterway on Monday, compared with a 10-day average of 11. No very large crude carriers or liquefied natural gas tankers were recorded crossing on Monday.

The Strait of Hormuz is one of the world’s most important energy routes, making the latest attack a fresh concern for global oil supplies and shipping.

The incident involving the ship hit by the unknown projectile also comes after the expiration of a 60-day US-Iran negotiation window without a broader peace agreement, leaving tensions over the strategic waterway unresolved.