U.S. set to impose 50% tariffs on Canada after failed talks; Canada to match them

The United States is poised to implement 50% tariffs on approximately $20 billion of Canadian goods, marking a significant escalation in trade tensions between the two historic allies. This move follows the collapse of last-ditch negotiations aimed at resolving the latest strain in their relationship. U.S. Trade Representative Jamieson Greer informed reporters that Canada had rejected the terms of a trade deal previously agreed upon earlier in the week.

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Canada will match those tariffs dollar for dollar to protect our workers and businesses.

In response, Canadian Prime Minister Mark Carney declared that the progress made during negotiations was insufficient to meet Canada's objectives. "As a result, this evening, I have decided to suspend trade negotiations with the U.S. and have directed Canada's negotiators to return to Ottawa," Carney stated. He further announced that "Canada will match those tariffs dollar for dollar to protect our workers and businesses."

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

President Trump's proposed tariffs will affect about 5% of Canada's annual exports to the U.S., impacting a range of products from hockey sticks to tongue depressors. The political ramifications are expected to be substantial, potentially overshadowing the economic fallout. Canada had previously threatened retaliation against any new U.S. tariffs with levies of its own, further aggravating a trade conflict between nations that traded $880 billion in goods and services last year. The tariffs were initially slated to take effect early Wednesday but were extended by three days to allow for continued talks, which ultimately failed to yield an agreement.

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Canada had declined to finalize the trade deal under the terms that had been agreed to earlier this week.