US hits Canadian goods with 50pc tariffs after trade talks fail

The United States imposed 50 percent tariffs on certain Canadian goods Saturday, targeting about $20 billion worth of products, after trade negotiations between the two allies collapsed. Each side blamed the other for derailing the talks.

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

The tariffs, which took effect just after midnight, apply to items such as wooden ice hockey sticks. While these specific goods represent a small fraction of Canada's exports to the U.S., the action signifies a significant increase in tensions between President Donald Trump and Prime Minister Mark Carney.

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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.

Prime Minister Carney announced the suspension of trade negotiations, stating Canada would retaliate "dollar for dollar." He asserted that last-minute changes to U.S. proposals were unfair and uneconomic, questioning the reliability of any potential deal. Carney, who had promised to stand firm against Trump, remains popular in Canada, with most citizens opposing concessions.

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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.

Earlier, sources indicated a potential agreement that would have lowered tariffs on steel, aluminum, and autos. However, U.S. Trade Representative Jamieson Greer stated that Canada declined to finalize the deal under previously agreed terms, calling it a "missed opportunity" for Canada to partner with the U.S. economy. A senior Trump administration official cited Canada's pursuit of additional concessions, particularly on steel, aluminum, autos, and softwood lumber, as the reason for the breakdown. No further talks are scheduled.

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