US Imposes Tariffs as Trade Talks Collapse
Canada Vows Retaliation After Last-Minute Negotiations Fail to Avert New Levies on $20 Billion in Goods
Carla Rooney
The United States is set to impose 50% tariffs on $20 billion worth of Canadian products.
Canadian Prime Minister Mark Carney confirmed the suspension of negotiations, vowing to retaliate "dollar for dollar" against the new levies.
The two countries traded goods and services worth $880 billion last year.
These new measures compound existing US tariffs on steel, lumber, and vehicles.
Trade negotiators had engaged in intense talks since July, yet the North American neighbors failed to reach a deal late on Friday night.
Jamieson Greer stated, "Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week."
Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.
Greer also claimed new demands and walk-backs of other commitments by Canada had upended the careful balance reached in the past days.
Prime Minister Carney countered, stating, "Last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal."
The US had reportedly asked for concessions, including the removal of retaliatory tariffs on American autos and adjustments to dairy quotas.
The US also sought the removal of a ban on US alcohol sales.
Details of a potential deal, which reportedly leaked to several media outlets, suggested the US would halve tariffs on Canadian steel and aluminum from 50 to 25 percent and reduce tariffs on Canadian cars from 25 to 15 percent.
The goods affected by the new tariffs reportedly range from hockey sticks to tongue depressors.
The U.S.-Canada border, the longest undefended border in the world, sees significant daily crossings of people and goods.
The United States has begun formal talks with Mexico over revamping the US-Mexico-Canada Agreement (USMCA), while talks with Canada have not yet commenced.
In 2025, Trump imposed double-digit import taxes on almost every country; however, the Supreme Court in February ruled he had overstepped his authority, striking down those tariffs and setting the stage for the federal government to pay refunds to importers.