Canadian Prime Minister Mark Carney said Friday that Canada would match US tariffs "dollar for dollar" after rejecting Washington's conditions for a trade deal.

"Last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal," Carney said in a statement.

The US intends to impose a 50% tariff on roughly 28 billion Canadian dollars (about $20 billion) worth of Canadian goods at midnight, Carney said, adding that Canada would match the tariffs dollar for dollar to protect Canadian workers and businesses.

Carney said important progress had been made towards improving Canada's position in securing what he described as the best deal in the world with the US. However, the progress was not enough to meet Canada's objectives.

As a result, he said he had decided to suspend trade negotiations with the US and directed Canada's negotiators to return to Ottawa.