Last-minute trade negotiations between the United States and Canada have collapsed, triggering a new round of 50% U.S. tariffs on billions of dollars in Canadian goods from today, Saturday.
The breakdown came late Friday, just hours before the tariff deadline.
U.S. Trade Representative Jamieson Greer said Canada declined to finalize a trade agreement under terms that had been agreed earlier in the week. Washington said its offer would have given Canada better treatment than any other major exporter to the U.S. market, including significant tariff reductions on Canadian steel, aluminum, automobiles and lumber.
The U.S. also said the proposed agreement would have expanded cooperation on export controls, digital trade, critical minerals and supply chains, while paving the way for formal negotiations on the United States-Mexico-Canada Agreement, or USMCA.
But Canadian Prime Minister Mark Carney said the progress made in recent weeks was not enough to meet Canada’s objectives.
Carney suspended the negotiations and ordered Canada’s negotiating team back to Ottawa, saying last-minute changes to the U.S. proposal were unfair and economically damaging.
The United States has now imposed the new 50% tariffs, effective from 12:01 a.m. Saturday, on a range of Canadian imports. The measures cover roughly US20billiontoUS28 billion worth of goods, depending on the calculation used, and affect products including hockey equipment and other manufactured goods. They represent about five percent of Canada’s exports to the United States.
Canada has vowed to retaliate.
Carney says Ottawa will match the U.S. tariffs dollar for dollar to protect Canadian workers and businesses.
He also said the government will announce additional measures to support affected businesses and workers in the coming days.
