US Imposes 50% Tariffs on Canadian Goods as Trade Talks Collapse
The US has imposed 50% tariffs on $20 billion of Canadian goods after trade talks failed, prompting Canada to suspend negotiations and vow retaliation.
The United States has imposed 50% tariffs on approximately $20 billion worth of Canadian goods, a move that took effect just after midnight on Saturday. The duties, which cover products such as wooden ice hockey sticks, represent just over 5% of Canada's exports to the US and are not expected to significantly impact the broader American economy.
The tariffs were implemented after three days of negotiations in Washington between Canadian Trade Minister Dominic LeBlanc and US Trade Representative Jamieson Greer failed to produce an agreement. The collapse of the talks marks a sharp escalation in tensions between President Donald Trump and Canadian Prime Minister Mark Carney.
Prime Minister Carney announced that he has suspended trade negotiations with the US and directed Canadian negotiators to return to Ottawa. In a statement, Carney said his team had worked in good faith to defend Canadian interests, but that "last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal."
US Trade Representative Jamieson Greer said during a White House briefing that "Canada declined to finalize the trade deal under the terms agreed earlier this week," calling it a "missed opportunity" for Canada to partner with the fastest-growing economy in the G7.
A senior Trump administration official said the US offer would have given Canada the best tariff position of any major exporter to the US, but that Canada sought additional concessions, particularly on steel, aluminum, autos, and softwood lumber. No additional talks are currently scheduled.
The new duties add to existing US tariffs on steel, lumber, and autos that have already hurt those sectors over the past 18 months. Trade experts warn the latest measures could cause severe damage to some already vulnerable Canadian industries, potentially leading to job losses and business closures.
Carney, who was elected last year on a platform of standing up to Trump, remains broadly popular at home, with polls showing most Canadians oppose making concessions to the US president. Canada has vowed to retaliate "dollar for dollar" on the new tariffs.