US and Canada fail to resolve trade dispute, tariffs imposed

Negotiations between the United States and Canada to prevent new U.S. tariffs on a broad range of Canadian goods failed, with the duties taking effect at midnight local time. U.S. official J. Greer stated that Canada abandoned a trade agreement based on terms agreed upon earlier in the week. He claimed that new Canadian demands and a withdrawal from commitments disrupted the balance achieved in recent days, despite a U.S. offer of preferential terms for Canadian exporters.

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This evening, Canada refused to reach a trade agreement under the terms agreed upon earlier this week. Despite the U.S. offer to Canada to provide the best terms of all major exporters in our market, new Canadian demands and withdrawal from other commitments have disrupted the balance achieved in recent days.

Canadian Prime Minister Mark Carney countered that last-minute changes to the U.S. proposals were unfair, uneconomical, and cast doubt on the credibility of any agreement. He instructed Canadian negotiators to return to Ottawa, though the specific changes or new demands from both sides remain unclear. Carney also announced that Canada would impose retaliatory tariffs of equal value on U.S. products.

Initially, the tariffs were scheduled to take effect on Wednesday, but President Trump extended the deadline by three days to allow for additional negotiations. Reports indicate that negotiators from both countries worked until the last minute. Canada had expressed optimism about a trade deal on Friday, with Minister Dominic LeBlanc stating that both sides were making progress after a meeting with J. Greer in Washington.

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Last-minute changes to the conditions proposed by the U.S. were unfair, uneconomical, and cast doubt on the credibility of any agreement.

The new U.S. tariffs are expected to apply to Canadian products valued at approximately $20 billion, representing a relatively small portion of Canada's exports to the U.S. However, this marks the first time Washington has targeted goods covered by the North American Free Trade Agreement.

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Canada will respond with retaliatory tariffs of equal value on U.S. products.