The Canadian dollar fell sharply against its US counterpart to kick off the trading week after trade talks fell through this past weekend. The loonie had been gaining some momentum on a weaker greenback, but now it is poised to reverse the trend.

Canadian Prime Minister Mark Carney announced on Saturday morning that Ottawa will implement tit-for-tat tariffs on American goods. Washington imposed 50% tariffs on about $20 billion worth of goods from its northern neighbor.

“We cannot accept what they’ve offered, and we will not give what they asked,” Carney told reporters in Ottawa. “We can’t control the storm that blows in from Washington. We can, however, chart a new course by building Canada strong at home and diversifying our trading relationships abroad.”

In an interview with CNBC’s “Squawk Box” on Monday, US Trade Representative Jamieson Greer said an agreement was close to being reached, but Ottawa “wanted more.”

Carney, however, noted that the United States sought to impose restrictions on Canadian trade deals with other countries, as well as French-language rules.

“We offered them the best access to the United States of any country in the world. Obviously, there’s always going to be tariffs, and there’s going to be that protection for American workers and companies,” Greer said.

“But we sought to accommodate the Canadians by… cutting tariffs in half on steel, on aluminum, and extensively reducing them on autos, and even on things like softwood lumber, accommodating some element of that. Things that are sensitive for the Canadians. They simply… wanted more.”

He added that it “doesn’t make economic sense” for Canada.

The loonie felt the impact of abandoned trade negotiations.

The USD/CAD currency pair fell 0.46% to 1.3828, from an opening of 1.3765. The loonie is down 0.74% against the greenback.

Canadian government bond yields fell at the start of the trading week. The benchmark ten-year yield declined more than six basis points to 3.7%. The one-month yield was largely unchanged at 2.28%, and the 30-year yield fell 4.5 basis points to 4.127%.