US hits Canada with 50% tariffs as trade talks collapse

Fresh 50% tariffs on billions of dollars of Canadian goods have taken effect after U.S.-Canada trade talks collapsed at the last minute. Prime Minister Mark Carney promised retaliation, stating his government would match the duties "dollar for dollar to protect our workers and businesses."

The U.S. tariffs, impacting hundreds of items such as plywood, liquor, and hockey gear worth approximately $20 billion, began on Saturday. U.S. officials are prepared to present President Donald Trump with options to escalate the dispute if Canada retaliates.

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dollar for dollar to protect our workers and businesses.

Both nations pointed fingers for the breakdown. U.S. Trade Representative Jamieson Greer accused Canadian negotiators of making eleventh-hour demands that derailed a draft deal. Greer stated, "Despite the U.S. 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."

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Despite the U.S. 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.

Conversely, Carney asserted that the U.S. shifted its position, describing the "last-minute changes in the U.S. proposed terms" as "unfair, uneconomic, and called into question the reliability of any deal."

The failure to reach an accord heightens tensions between the two long-time allies, whose bilateral trade in goods and services neared $900 billion last year. The situation underscores the potential for a spiraling trade fight, with no new talks immediately scheduled.

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