US, Canada fail to reach trade deal; Trump to impose 50% tariffs on some imports

Trade negotiations between the United States and Canada collapsed late Friday, resulting in the U.S. imposing significant tariffs on Canadian goods. A senior Trump administration official confirmed that Section 338 tariffs would target about $20 billion worth of Canadian imports, effective immediately after midnight Saturday.

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I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to return to Ottawa.

In response, Canadian Prime Minister Mark Carney announced the suspension of trade talks. He stated that Canada would retaliate with dollar-for-dollar tariffs, emphasizing that negotiators had worked in good faith but faced "last-minute changes in the US proposed terms" that were "unfair, uneconomic, and called into question the reliability of any deal."

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They (negotiators) have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute.

The U.S. decision followed three days of intensive talks in Washington between Canada's Minister for Trade with the U.S., Dominic LeBlanc, and U.S. Trade Representative Jamieson Greer. While the new measures impact a smaller portion of Canadian exports, they add to existing U.S. tariffs on steel, lumber, and autos, potentially hindering Canada's economic recovery and future trade relations.

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