Canada to match US tariffs 'dollar for dollar' as trade talks collapse

Canada announced it will impose reciprocal tariffs on U.S. goods "dollar for dollar" after trade negotiations broke down late Friday, just before a midnight deadline.

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

Canadian Prime Minister Mark Carney stated that "last-minute changes in the U.S. proposed terms were unfair, uneconomic, and called into question the reliability of any deal." He announced the suspension of negotiations shortly before the deadline and directed negotiators to return to Ottawa. Carney acknowledged that "important progress" had been made but deemed it "not enough to meet our objectives for Canadians."

The collapse of talks represents a sharp reversal from earlier in the week, when both U.S. and Canadian officials expressed optimism about reaching a mutually beneficial trade agreement. Negotiators had reportedly been discussing reducing U.S. tariffs on Canadian steel and aluminum from 50% to 25%, and on Canadian autos from 25% to 15%. In return, Canada had been asked to restore U.S. alcohol products to store shelves.

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As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed negotiators to return to Ottawa.

U.S. trade representative Jamieson Greer responded by stating that Canada had declined to finalize the deal under previously agreed terms. Greer accused Canada of making "new demands and walk backs of other commitments," which he claimed "upended the careful balance reached in the past days," despite a U.S. offer of preferential treatment for Canadian exports.

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Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week.

The breakdown is the latest escalation in trade tensions that have simmered since President Donald Trump took office. Canada will now face new 50% U.S. tariffs, imposed under a Depression-era law, on a range of goods including wine, dairy, cement, clothing, and hockey equipment. These are in addition to existing U.S. tariffs on Canadian steel, aluminum, autos, and lumber.

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Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days.