Canada vows to match Trump’s 50% tariffs after trade deal talks fail

Canada has pledged to impose retaliatory tariffs on US goods, matching any tariffs imposed by the United States "dollar for dollar." This commitment comes after last-minute trade deal negotiations between the two North American nations collapsed 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 to US proposed terms were unfair and uneconomic, questioning the reliability of any potential agreement. The US, through its trade representative Jamieson Greer, announced it would impose 50% tariffs on approximately $20 billion worth of Canadian products.

Greer indicated that despite an offer for Canada to receive preferential treatment, new demands and backtracking on commitments from Canada disrupted the delicate balance previously achieved. The tariffs, initially set to take effect earlier in the week, were extended by President Donald Trump to allow for continued talks, but an agreement could not be reached.

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

The economic impact of the US tariffs is expected to affect about 5% of Canada's annual exports to the US, including items like hockey sticks and tongue depressors. However, the political ramifications are anticipated to be more significant, given the $880 billion in goods and services traded between the two countries last year.

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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.